What happened

Shares of Magnite (MGNI 2.91%) climbed 12.8% higher in January, according to data provided by S&P Global Market Intelligence. The stock started the month off by falling sharply after a short-seller report. But there are still plenty of analysts who remain bullish on Magnite's opportunity, which helped reverse its early losses.

So what

"Dubious" is the word Spruce Point Management believes best describes Magnite. In its short report, the firm said management's track record was questionable, the financial reporting has mathematical impossibilities, and it has serious accounting issues. And if these allegations weren't enough, Spruce Point says the ad tech specialist's stock is overvalued to boot. 

Sequentially taller stacks of wooden blocks are each topped with an upward-pointing arrow.

Image source: Getty Images.

Magnite stock fell immediately following Spruce Point's short report. However, a Susquehanna analyst believed the pullback was a buying opportunity, according to The Fly. The stock had fallen into the low $20s, yet Susquehanna maintained its $30 per-share price target. Later in the month, a Craig-Hallum analyst would go ever further by giving Magnite stock a whopping $45 per-share price target.

Now what

Expect Magnite management to thoroughly address Spruce Point's short report when it reports quarterly earnings on Feb. 24. More than its need to adequately calm shareholders' fears, the company also needs to show substantial growth to justify the stock's recent run-up -- shares are up almost 400% over the past year.

Day to day, analysts will continue to debate whether Magnite is a good investment. This is normal. Therefore, the accompanying short-term volatility can be largely ignored. That said, there is a lot riding on Magnite's upcoming quarterly results, so the results are both worth watching and placing into their big-picture context.