The Hut Group may be heading for disaster after its shares fell following a dire report.

The Hut Group could soon be in the end. It has been going through a downturn since its share price collapsed after a report was released. 

The Manchester-based group, which sells clothes, make-up and protein shakes online, is valued at £2.2billion, having hit £9.8billion when shares peaked at close to 800p in January.

The Analyst investment service highlighted what it thought was the excessive valuation of THG’s technology platform Ingenuity. This led to share prices plummeting. 

In his attempt to stem the losses, founder Matt Moulding only added fuel to the fire and since September shares have fallen more than 70 per cent. 

On Friday, shares were closed at 190p. That’s far less than the 500p offering price in September 2020. 

These prices are still far below the 796.2p that they were able to shoot for when THG was a stock market darling. Yesterday, however, it was revealed that The Analyst had stopped advising shorting the stock or placing a bet against it, signaling that they believe that there is no way for it to fall further. 

The stock will feel relieved by investors and everyone will watch it today to see whether or not the stock begins a long climb back.