Short-seller alleges Oddity Tech is misleading investors

Core Viewpoint - A short seller, Ningi Research, has accused Oddity Tech of misleading investors regarding its business model, claiming it is not solely an online retailer as advertised [1][4]. Company Allegations - Ningi Research published a report alleging that Oddity Tech operates over 40 physical stores in Israel, contradicting its claim of being a purely digital retailer [4]. - The report suggests that the majority of Oddity's profits are derived from its operations in Israel rather than the U.S. market [4]. - Ningi Research claims that Oddity's growth is significantly driven by subscription models that are difficult for consumers to cancel, leading to inflated repeat purchase rates [5]. Customer Complaints - The report highlights numerous complaints from customers regarding deceptive billing practices, with many alleging wrongful charges [6]. - Oddity's CEO, Oran Holtzman, acknowledged that a small percentage of customers may experience confusion regarding pre-authorizations related to their "Try before you buy" option [7][8]. - Holtzman stated that the company has invested in technology to educate users about its billing practices and improve customer experience [8]. Market Reaction - Following the allegations, Oddity's shares fell over 12% in premarket trading, indicating a negative market reaction to the news [3].