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.
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.
10 stocks we like better than Nano-X Imaging Ltd.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Nano-X Imaging Ltd. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 1, 2020
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.
