Investors have been left scratching their heads over after reports at the weekend suggested that Darktrace (DARK) has come under a shorting attack.

A Daily Telegraph story claims to have seen a document from US short-seller Shadowfall which included a barrage of criticisms of the cyber security specialist’s performance, accounting and culture.

Shares in Darktrace fell nearly 5% on Monday to 424p, less than half of last year’s 985p records.


Yet there appear to be mixed messages, with some market watchers claiming that Shadowfall’s shorting attack note to clients was first published in October 2021 and that the short-seller has since closed its Darktrace position.

Short Tracker data suggests that there is currently no Darktrace stock on loan to short sellers, including Shadowfall.

Darktrace proved a big hit with investors through 2021 with its stock listed on the UK market at 250p in April, before surging to near-£10 highs. But the market mood has soured since then with the company falling out of the blue-chip FTSE 100 index.

Investors and analysts have raised questions over the company’s ability to maintain its rapid pace of growth longer-term.

Darktrace stock jumped 12% last week after sales forecasts were raised.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account.

Issue Date: 17 Jan 2022