Hunterbrook Accuses Ubiquiti Gear of Powering Russian Military Communications
Hunterbrook says "American tech company's networking gear is powering Russian battlefield communications in Ukraine. The company is Ubiquiti, $UI, a $34 billion Wi-Fi giant whose founder became the youngest owner of an NBA Team in 2012." Ubiquiti radio bridge antennae serve a critical communications need for the Russian military in Ukraine, including for drone operations, according to a Hunterbrook investigation. In a recently published report, Hunterbrook says it identified at least nine Russian military units accused of war crimes, or individuals associated with those units, that use Ubiquiti equipment in Ukraine, based on a review of Telegram posts and open-source materials. "Ubiquiti openly admits 'we do not have any visibility' over purchases from its distributors, but legal experts told Hunterbrook that's not a viable defense," it adds. Based on Hunterbrook Media's reporting, Hunterbrook Capital is short Ubiquiti and long a basket of comparable securities at the time of publication.
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Ubiquiti Allegedly Supports Russian Military Operations
- Investigation Revealed: Hunterbrook Media's investigation alleges that Ubiquiti's radio-bridge antennas are being sourced by Russian military units despite U.S. export bans, indicating the equipment's critical role in drone operations in Ukraine, which could lead to increased regulatory scrutiny and reputational risks for the company.
- Sales Surge: Shipments of Ubiquiti products to Russia have reportedly increased in value by approximately 66% since the 2022 invasion, suggesting potential deficiencies in the company's sanctions compliance and channel monitoring, which may impact investor confidence and stock performance.
- Short Selling Activity: Hunterbrook Capital disclosed its short position in Ubiquiti shares while holding a basket of peer stocks, indicating expectations for further declines in Ubiquiti's stock price, potentially exacerbating negative market sentiment towards the company.
- Compliance Concerns: The report highlights past penalties related to shipments to Iran, raising questions about whether Ubiquiti's lean business model adequately prioritizes sanctions compliance, which could lead to future legal and financial risks.

Ubiquiti Shares Drop 4% Following Short Report
- Impact of Short Report: Ubiquiti's shares fell 4% in premarket trading following a short report from Hunterbrook Capital, indicating market concerns about the company's future performance and potentially undermining investor confidence.
- Short Position Disclosure: Hunterbrook Capital's disclosure of its short position in Ubiquiti reflects a negative outlook on the company's financial health, which may trigger similar actions from other investors.
- Lack of Response: Ubiquiti did not promptly respond to Seeking Alpha's request for comment, which could be interpreted by the market as a sign of the company's inability to address negative information, exacerbating market unease.
- Market Reaction Analysis: The volatility in Ubiquiti's stock price may impact its future financing capabilities and investors' perceptions of its long-term growth potential, especially in the highly competitive tech industry.









