Culper Research announced it is short LendingTree (TREE), which it calls “a highly levered lead generator that we believe has failed to properly disclose two massive blows to its business that have now grown into existential risks.” According to the short-seller, LendingTree is “sitting on a time bomb of litigation exposing it to a minimum of $157 million up to $472 million in damages – almost the entirety of the Company’s current equity value” and “has unsuccessfully fought this suit for the past 5 years, all the while never disclosing its existence to investors.” The short-seller added: “Despite these developments, LendingTree CEO Doug Lebda told a totally different story on the Company’s Q3 conference call, characterizing the nearly half-a-billion dollar exposure as mere ‘normal course’ proceedings… Second, we believe LendingTree will be decimated by January 2025 FCC rule changes that ‘close the lead generator robocall and robotexts loophole.'” In afternoon trading, LendingTree shares have fallen over 7% to $35.83.
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Read More on TREE:
- Culper Research says short LendingTree
- LendingTree down 9% after Culper short call
- LendingTree price target raised to $70 from $60 at Truist
- LendingTree price target raised to $70 from $65 at Oppenheimer
- LendingTree price target raised to $78 from $67 at Needham
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
