TaskUs drops after new short report from Spruce Point (update)
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Update 10:39am: Adds TaskUs response to short report.
Digital outsourcing firm TaskUs (NASDAQ:TASK) fell 13% after a new short call from Spruce Point sees potential for 25% to 50% downside risk for the shares.
Spruce Point alleges that the company has "exaggerated and inflated business claims" and sees potential "financial strain" in its relationship with Facebook (NASDAQ:FB), which represents 28% of its sales.

Spruce Point writes that its long Concentrix (NASDAQ:CNXC) and Majorel Group Luxembourg as the companies are expected to succeed against TaskUS and trade at "material" valuation discounts. Concentrix (CNXC) rose 3.8%.

TaskUs said in a statement to Seeking Alpha that it's aware of the Spruce Point report and believes it's "designed for the sole purpose of negatively impacting TaskUsâ share price for Spruce Pointâs own benefit."
TaskUs is reviewing the report and will "take appropriate steps in response to the assertions," according to the statement. "We remain confident in our strategy, our value proposition and our ability to create value for our clients, teammates and shareholders.
TaskUs provides fast-growing tech companies and other firms with outsourced customer service, technical support, content moderation and the like. TASK focuses on serving big tech firms, counting Zoom, Netflix, Uber, Coinbase and Oscar among its 100+ clients.
TASK short interest is 11.7%.

Recall October, TaskUs prices upsized secondary stock offering at $63.50.

TaskUs went public in June, soaring 35% in its first day of trading.