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On March 27, 2025, before the market opened, Gotham City Research LLC issued a short report on Kyndryl. The report accused the company of manipulating its adjusted financial metrics “to artificially give the appearance that it generates profits and cash flow.” It further claimed that Kyndryl is underselling the increase in its cost of services to IBM and, in reality, such costs will pressure earnings well below consensus estimates.
Following this news, Kyndryl’s stock price fell by $3.85 per share to open at $30.18 per share.