Short Seller Bear Cave reporter Edwin Dorsey furnished a short report on ODDITY Tech Ltd ODD, citing the company's business as 'high on hype, but low on substance.'
Notably, the reporter claims that the company mentioned "AI" and "machine learning" over 80 times in its IPO prospectus and went public to extreme investor enthusiasm for a high-growth and high-tech makeup company.
Oddity, which launched its first brand (makeup company) in 2018, has seen rapid sales growth to $222 million in 2021 and $324 million in 2022 from $110 million in 2020, notes the reporter.
Dorsey thinks the company wants investors to believe its strong growth is derived from a strong technological edge, with little mention of its makeup business on its corporate website. Instead, it promotes machine learning, AI-guided molecular discovery, etc.
Also, the reporter cited that Oddity "has attracted talent from elite Israeli technology centers including the Israeli Defense Forces' Unit 81, its Special Operations Division's technology unit." in its R&D hub.
Overall, Dorsey believes Oddity is a glorified Instagram and Facebook advertiser with many customer and employee complaints and is promoted by a firm 'with a history of public market duds.'
Also Read: ODDITY Tech's Bright Future, Analyst Credits Artificial Intelligence
Price Action: ODD shares are trading lower by 7.39% at $36.61 on the last check Thursday.
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