Presto Automation Inc (NASDAQ:MCD) deal appear false.
What To Know: According to a new note from short seller White Diamond Research, Presto Automation removed McDonald's from the customer list on its website just days after the stock rallied on rumors the company had inked a deal with the fast-food giant.
"We believe the logo got removed because the reality is McDonald’s isn’t a customer of PRST in any way, and now that attention is on PRST, they don’t want to get sued by investors for false information," the research firm said in a note.
White Diamond noted that the McDonald's rumors were a key driver of the stock's recent surge. PRST shares are up more than 60% over the last month. The research firm expects shares to retreat back toward the $1.50 level.
White Diamond is a research firm that sells information to hedge funds and high net worth individuals.
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PRST Price Action: Presto shares were down 27.1% at $2.63 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Presto Automation.
