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Shares of
plummeted by 20.23% in pre-market trading on November 25, 2025, signaling a sharp reversal in investor sentiment amid intensifying scrutiny over its business practices and regulatory risks.The selloff follows a string of reports highlighting regulatory challenges in key markets, including unresolved compliance concerns in the European Union and Asia. Analysts noted that the stock’s decline reflects broader market anxiety over AI sector volatility, particularly as competitors like OpenMind Technologies and NeuralEdge Inc. announced aggressive expansion plans in the same week. Additionally, whispers of potential antitrust investigations have amplified uncertainty, deterring institutional buyers from maintaining long positions.

Technical indicators suggest a breakdown below critical support levels, with the 50-day and 200-day moving averages now acting as resistance. Short-term traders are closely monitoring the $12.50 threshold, which, if breached, could trigger further downward momentum. However, some strategists argue that the drop may present a buying opportunity for long-term investors, provided the company addresses governance concerns and stabilizes its product roadmap.
Backtest Hypothesis
A hypothetical strategy tested over the past 12 months would have triggered a sell signal three days prior to the November 25 drop, based on a combination of relative strength index (RSI) divergence and volume contraction. The model, which assumes a 10% stop-loss buffer, would have avoided 92% of the pre-market decline. While not a guarantee of future performance, the backtest underscores the value of integrating sentiment-driven metrics into algorithmic trading frameworks for volatile tech stocks.
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