A billion-dollar server company loses more than 40% of its value following short-seller report
By Nora Redmond
Unrelated stocks swept up in atmosphere of apparent panic
Shares in the French company 2CRSi declined by about 40% on Thursday.
French technology group 2CRSi's stock tumbled more than 40% after accusations from a New York-based short seller - panicking retail investors in France, who sold other unrelated companies in the space.
Shares in 2CRSi, which designs and manufactures computer servers for data centers, slumped 43% in Paris, bringing its market capitalization down from about EUR1 billion ($1.15 billion) to below EUR600 million.
Grizzly Research, a short-selling research firm, alleged in a report published on Thursday that the Strasbourg, France-headquartered 2CRSi fabricated revenue that it claimed from a contract announced in 2024.
2CRSi did not respond to MarketWatch's requests for comment via email. The phone numbers listed on 2CRSi's website were unable to be reached.
The company's CEO, Alain Wilmouth, was scheduled on Thursday to speak at a major French tech conference. His LinkedIn page promoted the conference but has not addressed the share-price decline.
On the website of Boursorama, which has a message board in roughly the same vein as Wall Street Bets on Reddit, the topic of 2CRSi (FR:AL2SI) quickly shot up to the most popular across discussion spaces.
A number of French tech stocks dipped following the Grizzly report on its investigation, with semiconductor company Kalray (FR:ALKAL) down 17%. Riber (FR:ALKAL), also engaged in the industry, dropped by close to 8%, and fellow tech firm Soitec (FR:SOI) fell by more than 5%.
France's main technology index declined by 1.5%.
Grizzly Research has a history of taking short positions on high-profile companies, with previous targets including Trustpilot and SharkNinja.
-Nora Redmond
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06-18-26 1034ET
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