Markets

Why Nano-X Imaging Stock Just Crashed Another 14%

What happened

Things are coming apart in a hurry for recent IPO and would-be medical device-making wunderkind Nano-X Imaging (NASDAQ: NNOX).

From IPO to last week's closing price, Nano-X shares soared 250%, but the stock got savaged by a short report earlier this week, and today it's getting hit again -- down 14.1% as of 11:14 a.m. EDT.

Stock arrow climbs up and then goes back down and crashes into the floor.

Image source: Getty Images.

So what

So what's going wrong for Nano-X this time?

It was noted short-seller Citron Research that labeled Nano-X "a stock promotion" and a likely $0 stock on Tuesday, but today, others are starting to glom on.

In particular, this morning Empire Financial Research's Whitney Tilson published a terse report agreeing with Citron that Nano-X looks like "Theranos 2.0." Although Tilson added no new detail to what Citron had already published, he did throw his reputation behind the short-seller, concluding that after reading the report, "there's no doubt in my mind that [Citron is] correct... and that this stock is worthless."  

Now what

Is one analyst agreeing with another analyst the best reason for investors to subtract another 14% from Nano-X's stock market value?

Maybe not. But in the absence of any more effective rebuttal to Citron than the weak sauce Nano-X dished out yesterday, it appears even a mere "I concur" against Nano-X is enough to take this stock down today.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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