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Dexcom Stocks Continue To Drop After Short-Seller Warns of Competition From Abbott

Investment managing firm Spruce Point says factors such as patients hacking their older Dexcom continuous glucose meters, the company’s decision to not disclose its patient base and competition from Abbott’s upcoming Libre 2 CGMs are red flags that Dexcom is overstating its market potential. Dexcom's stocks lost a fifth of their value after the short-seller released a recent report that says the firm is overvalued.

Businessman looking down at the falling red arrow destroying a concrete barrier. Collapse and drop. Fall and depreciation. Regression and deterioration. Crisis. - Image

Diabetes management device-maker Dexcom Inc. has seen its stocks continue to drop over the past week after an activist short-seller issued a report arguing the company was overvalued, and that imminent competition from Abbott Diabetes Care Inc. diabetes devices will seriously curtail Dexcom's potential market size. Since the report was released, the company’s stocks have dropped more than 20%.

Ben Axler, founder and chief investment officer at Spruce Point Management, said his firm was drawn to investigating Dexcom when...

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