Skip to main content

Market Overview

Proofpoint Crashes Following Muddy Waters New Short Idea


Shares of Proofpoint Inc (NASDAQ: PFPT) plummeted early Thursday afternoon following a tweet from noted short-seller Muddy Waters.

The firm said Proofpoint has an exaggerated total addressable market, "fudged organic growth, competition eroding pricing power, heavy insider sales."

The firm also said Proofpoint is mischaracterized as "cyber" security, and instead labeled them as "email" security.

Muddy Waters presented the idea at the Sohn London Investment Conference, which is taking place all day Thursday.

Proofpoint Chairman Eric Hahn sold 15,000 shares according to a Form 4 Filing released Wednesday at 9:48 p.m. ET. The transaction took place on November 25.

Shares of Proofpoint dropped more than 11 percent immediately following the tweet, which was posted at 12:56 p.m. ET. Shares hit a low of $62.47 before edging back up. The stock traded recently at $69.39, down about 4.8 percent.

The stock was trading steady all morning, with its day-high sitting at $73.59.


Related Articles (PFPT)

View Comments and Join the Discussion!

Posted-In: Eric HahnNews Short Sellers Short Ideas Events Intraday Update Movers Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at