Why Poet Technologies Stock Got Torched on Tuesday
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By Eric Volkman – Apr 14, 2026 at 7:32PM ESTKey PointsThat 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.Investors weren't liking what they saw with opto-electronics component specialist Poet Technologies' (POET 8.08%) 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." 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. ExpandNASDAQ: POETPoet TechnologiesToday's Change(-8.08%) $-0.59Current Price$6.71Key Data PointsMarket Cap$662MDay's Range$6.57 - $7.6152wk Range$3.58 - $9.41Volume23MAvg Vol9.7MGross Margin-20849.45% 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. Read NextApr 4, 2026 •By Scott LevineWhy Poet Technologies Stock Soared This WeekApr 14, 2026 •By Keith NoonanWhy IonQ Stock Skyrocketed TodayApr 14, 2026 •By James BrumleyHeading Into the Heart of Q2, These Are the 3 Artificial Intelligence (AI) Stocks I Want to OwnApr 14, 2026 •By Keith NoonanWhy Oracle Stock Surged TodayApr 14, 2026 •By Keith NoonanIonQ's New DARPA Contract Could Make It the Top Quantum Stock of 2026About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedPoet TechnologiesNASDAQ: POET$6.71(-8.08%)-$0.59*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.