Sinch Plunge Wipes Out $1.3 Billion After Profit Warning

Sinch AB shares plunged for a second day, earlier erasing as much as $1.3 billion of market value, as the Swedish cloud-based platform provider warned that a “reassessment” of certain historical costs will hit second-quarter profit.

The stock fell as much as 25% in Stockholm, extending a 28% drop on Monday which traders had attributed to a tweet on Sinch’s financial statements from an account called Ningi Research. By 2:20 p.m. in Stockholm the shares had staged a partial recovery and were quoted down 7%.