Reported Company:

ODDITY Tech Limited

Researcher Company:

Ningi Research

Price at Report Date:

Close Price Day after report date:

44.61

% Decline Day after Report Date:

% Decline vs Yesterdays Date:

-4.9765

Summary

Ningi Research, an activist short seller, released a report targeting ODDITY Tech Limited (NASDAQ: ODD). The report accuses ODDITY of misleading investors by concealing significant brick-and-mortar operations in Israel and employing deceptive sales tactics.

Who is ODDITY Tech Limited?

ODDITY Tech Limited is an Israeli-based beauty and wellness company that markets itself as a digital-only, AI-powered platform. The company went public in 2023, claiming to revolutionize the beauty industry through personalized product recommendations driven by AI.

Key Points from Report

“Digital-Only” Claims Debunked

• ODDITY allegedly operates 43 undisclosed physical stores and six beauty schools in Israel.
• The company reportedly used these hidden operations to inflate earnings and boost its IPO valuation.

Financial Red Flags

• ODDITY’s Israeli subsidiaries are unaudited, violating Israeli law. These operations contribute significantly to the company’s profits but are not fully disclosed.
• The company quietly restated previous years’ revenues by millions, raising concerns about its financial transparency.

Deceptive AI and Sales Practices

• ODDITY’s AI-driven product matching is described as basic and misleading, with customer complaints about being lured into non-cancelable subscriptions.
• Insiders, including the CEO, have aggressively sold their shares, casting doubt on the company’s future prospects

Legal and Insider Activity Concerns

• ODDITY is involved in numerous undisclosed lawsuits and has unpaid tax warrants.
• Insiders, including the CEO, have aggressively sold their shares, casting doubt on the company’s future prospects

Activ8 Finance Analysis

The Ningi Research report on ODDITY Tech Limited paints a troubling portrait of a company that may have misrepresented key aspects of its operations. Allegations of undisclosed brick-and-mortar stores, financial inconsistencies like unaudited subsidiaries, and revenue restatements point to potential significant risks. The report also underscores deceptive sales practices and ongoing legal challenges, which could undermine confidence in the company. These issues suggest a heightened level of risk associated with ODDITY Tech Limited.