Why Samsara Stock Nose-Dived This Week
Shares of Internet of Things (IoT) company Samsara (NYSE: IOT) had a rough week. According to data compiled by S&P Global Market Intelligence, its shares lost nearly 18% of their value over the period, and it was due largely to a scathing report on its operations by a short-seller.
That short-seller, Spruce Point Capital, published a research report on Wednesday that was sharply critical of Samsara. It claimed the company uses improper accounting practices, and said it has enjoyed little success in the high-potential IoT sphere.
Spruce Point said that Samsara has pushed into only a few segments of that market, namely the electronic logging devices (ELDs) that help track driver activity in truck fleets, auto safety cameras, and GPS trackers. Outside of these rather limited areas, the short-seller said, Samsara hasn't yet gained "meaningful traction."
Source Fool.com
