Overview
- Everspin Technologies, which was targeted Tuesday by Kerrisdale with a short report and a $14 price goal, fell between 8% and 11% intraday on heavy trading.
- Kerrisdale argues Everspin’s magnetoresistive RAM is built for durable, low‑power, embedded uses and not the high‑speed, high‑density memory needed in hyperscale AI servers.
- The report says the company’s biggest end market is casino gaming equipment, not cloud data centers, challenging the AI narrative that has lifted memory stocks this year.
- Kerrisdale calls the valuation excessive, citing roughly 10x projected 2027 sales, about 38x 2027 EBITDA, and an outsized price‑to‑earnings ratio, while revenue has hovered around $50–$65 million for years.
- The firm highlights momentum signals including a session with more than $1 billion in trading activity and about $3.9 million of insider stock sales over three months with no insider buying.