Codere Online's (NASDAQ: CDRO) stock experienced a significant drop following the resignation of its auditor Marcum on December 20, potentially threatening its Nasdaq listing status.

The company's shares fell 8.42% on more than double the average daily trading volume after Marcum's departure, which occurred due to inability to verify the completeness of Codere's 2021-22 financial records related to third-party platform provider relationships.

The online gaming operator now faces a crucial Nasdaq appeal hearing on January 16, 2025, seeking an extension until May 12, 2025, to maintain its listing. The company is actively seeking a replacement auditor before the hearing to address its non-compliance with Nasdaq's Listing Rule 5250(c)(1).

Despite recent setbacks, Codere Online has shown strong performance in 2024, with shares up 113.95% year-to-date. Stifel analyst Jeffrey Stantial maintains a "buy" rating with a $10 price target, suggesting a 58.9% upside potential.

The potential delisting would force the $306.67 million company to trade over-the-counter, likely reducing its appeal to institutional investors. However, analysts remain cautiously optimistic about Codere's ability to resolve its filing delays, citing the company's strong operational track record, though acknowledging the challenging timeline and limited control over auditor requirements.

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