** Shares of technology services company Kyndryl Holdings KD.N fall 14.5% to $29.13
** Short-seller fund Gotham City Research issues report saying KD manipulates reported adj. EBITDA and adj. free cash flow to artificially give the appearance that it generates profits and cash flow; while in reality, KD generates losses and burns cash
** Says have identified accounting and disclosure irregularities regarding KD's reported 2019-2023 payments to IBM IBM.N
** "KD reports $1,382 mln as its 6-month, 9-month, and 12-month related party cost of services figure (how much it pays to IBM). We find this highly confusing and suspect," says Gotham City Research
** Says "KD discontinued reporting its IBM costs since 2023, despite the fact that IBM has been Kyndryl's largest supplier"
** Kyndryl did not immediately respond to a Reuters request for comment
** Shares had risen 66.5% in 2024
(Reporting by Harshita Mary Varghese in Bengaluru)
((HarshitaMary.Varghese@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
No relevant data is available
If the download button clicks without skipping, click on the top right menu and select "Open in Browser."