Why Poet Technologies Stock Got Torched on Tuesday
Key Points
That firm, Wolfpack Research, said investors face significant tax consequences due to management's conduct.
It also wrote that the company has spent significant amounts of capital on questionable promotional activities.
- 10 stocks we like better than Poet Technologies ›
Investors weren't liking what they saw with opto-electronics component specialist Poet Technologies' (NASDAQ: POET) stock on the second trading day of the week. A highly critical, scathing report from a short-seller firm dampened sentiment on the company to the point where its shares closed the day 8% lower.
Harsh allegations
That morning, Wolfpack Research divulged a short position in Poet, and wasn't shy to enumerate the reasons why. In a note published on its website, the firm digested these in a headline bluntly titled "We Believe Poet Is a[n] Obvious Stock Promote, Has Created an IRS NightMare: U.S. Holders Have Until April 15 to Act."
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Wolfpack accused management of putting the company "on a collision course" with the federal tax authority by accumulating massive amounts of cash through its frequent issuing of new shares. It added that this could have significant financial implications for its stockholders, hence the advice to exit the stock before the IRS's tax filing deadline.
On top of that, according to the short-seller, Poet has "continuously" pivoted its business from one type to another, with little success. It said the company has earned only $2.3 million since 2020.
As of late afternoon Tuesday, Poet had not officially commented on Wolfpack's report.
The influence of influencers
The ten-page document was loaded with these and other incendiary accusations, including one in which Wolfpack alleges that Poet paid online "influencers" to promote its stock as a buy.
In one specific example, it stated that the company handed $95,000 to a Canada-based entity called LFG Equities to draft two YouTube stock pickers with significant followings. This pair was apparently paid to flag Poet stock as a "hidden gem" to their audience.
While Wolfpack has a clear interest in turning market sentiment negative on Poet, as investors, we have to take such accusations seriously. Investors were right to err on the side of caution and unload their stock. We should now watch for how -- and if -- Poet eventually responds to this research.
Should you buy stock in Poet Technologies right now?
Before you buy stock in Poet Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Poet Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 14, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
