Why Did Calidi Biotherapeutics (CLDI) Plunge 15.33%?

On August 20, 2025, Calidi Biotherapeutics, Inc. (CLDI) experienced a significant drop of 15.33% in pre-market trading, reflecting a notable decline in investor sentiment.

Calidi Biotherapeutics, Inc. has recently undergone a 1-for-12 reverse split, which has contributed to the volatility in its stock price. This move, combined with tepid earnings forecasts, has led to a substantial decrease in the company's value. The reverse split is a strategic decision aimed at increasing the stock price, but it has also raised concerns among investors about the company's financial health and future prospects.

Additionally, the company's short interest ratio stands at 24.18%, indicating a significant level of bearish sentiment among traders. This high short interest suggests that many investors are betting against the stock, further contributing to its downward trend. The combination of these factors has created a challenging environment for Calidi Biotherapeutics, Inc., as it navigates through market uncertainties and investor skepticism.