(Reuters) - Web.Com Group Inc’s WWWW.O shares fell as much as 12 percent in regular trading after a research group said the internet domain name registrar has misrepresented its growth — but the group withdrew another allegation about illegal revisions to Web.com’s accounts.
Copperfield Research, the pseudonym of a group of anonymous researchers and short sellers, said it made an error when it said Web.com had changed past financial statements ahead of a debt offering.
Copperfield said it has a short position on the stock that it claims is worth just $6, 80 percent lower than Web.com's closing price on Tuesday. (link.reuters.com/cyr34v)
Web.Com was not immediately availability for comment.
Short-sellers make money when a stock price drops. They sell borrowed shares in the hope of buying them back at a lower price, returning them to the lender, and gaining from the difference.
Copperfield said Web.com “is a stagnant business and possibly even in decline.”
Shares of Jacksonville, Florida-based Web.com fell to a low of $25.21 on the Nasdaq, before recovering a little to close down at $27.36.
Reporting by Soham Chatterjee and Supantha Mukherjee; Editing by Rodney Joyce