(Bloomberg) — Sinch AB shares plunged for a second day, erasing in total about $1.3 billion of market value, as the Swedish cloud-based platform provider warned that a “reassessment” of certain historical costs will hit second-quarter profit.
The stock fell as much as 25% in Stockholm, extending a 28% drop on Monday which traders had attributed to a tweet on Sinch’s financial statements from an account called NingiResearch.
The company said Tuesday that the reassessment of cost of goods sold for past periods will negatively affect second-quarter earnings by 162 million Swedish kronor ($15.3 million). It said it decided to issue a statement in light of “the unusually strong share price movement” on Monday, even though remaining parts of the results have not yet been finalized ahead of their July 21 release.
“Whilst the third-party analysis does not discuss reassessment of cost of goods sold, the analysis claims that revenues for 2021 are overstated, which is something that Sinch strongly opposes,” it said in the statement.
NingiResearch didn’t respond to a request for comment.
Describing Sinch’s statement as a “profit warning,” Svenska Handelsbanken AB analyst Daniel Djurberg said that while uncertainty is high, that should be fully discounted in the stock price by now.
Following Tuesday’s drop, Sinch shares are down 82% year-to-date.
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