Shares of medical cloud software firm Veeva Systems (VEEV) were falling almost 6% on Tuesday afternoon after noted short seller Citron Research tweeted a short recommendation on the stock.
$VEEV price target $65. Competition has arrived as multiple is at peak and short interest at low. Same setup as $NVDA at $280. A market correction will hit $VEEV harder than any other SaaS name. Buyout off the table until $40— Citron Research (@CitronResearch) December 4, 2018
Veeva shares began the day trading at about $99 and were already falling when Citron published a tweet setting a price target of $65, saying that a "a market correction will hit $VEEV harder than any other SaaS name." Selling accelerated after the tweet, before recovering some ground. The broader markets were down about 3% on Tuesday on concerns about the U.S.-China trade deal and concerns over economic growth.
Citron likened Veeva's position to chipmaker Nvdia (NVDA) , which hit a closing high of $289 on Oct. 1 before plummeting to $159 currently.
Veeva is still up almost 70% this year.