1. e.l.f. Beauty is under investigation for potential securities law violations. 2. Muddy Waters Capital is shorting ELF, citing revenue concerns. 3. ELF shares dropped by 28% after profit and sales projections were lowered.
The ongoing investigation and significant stock drop raise investor concerns, echoing previous incidents where similar news negatively impacted stocks significantly.
The investigation directly targets e.l.f. Beauty, significantly affecting its stock perception and potential future performance.
Immediate investor reaction likely to drive stock volatility, as seen in past investigations.