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Affiliate Monitor Under pressure
It is a solid performance and reflects the success the company has enjoyed in convincing investors of its investable proposition – namely, that it can benefit from the trend towards the greater regulation of gambling in North America while also being an ancillary winner from the continued strength of the main gambling markets in Europe. US investors are seemingly convinced.
Better Collective share price, one-year view( Mar 2024-Mar 2025)
SPLITS A FAMILY IN TWO
But the same cannot be said for investors in Europe where the share prices for the listed suppliers are at an all-time low ebb. Witness, for instance, the problems being encountered by market-leader-byrevenue Better Collective.
Following its profit warning in October, the share price suffered a one-day drop of 35 % and unfortunately for investors that remain with the stock – including a lot of company insiders – the share price hasn’ t recovered any since.
In fact, on a one-year view as of late March, the Better Collective share price is down 58 % and down 62 % from its all-time high in February 2024 of SEK321.
As one analyst said of situations where share prices fall suddenly, the way back can be treacherous, if not impossible to navigate.
PUSHING DOWN ON ME
No better illustration can be found than with Catena Media, which is perhaps the most fallen of fallen
Catena Media share price, five-year view( Mar 2020-Mar 2025)
stars. Its share price is down 77 % over a 52-week view but over a longer timeframe, the situation looks even worse. At its peak in June 2021, when the company was riding high after a series of acquisitions, the share price was worth nearly SEK76. Four years later, it is worth SEK2.5, meaning it has shipped 96 % of its value.
Value destruction doesn’ t come starker than this. It is evidence that the buy-rather-than-build model for affiliates is more than just broken. One could argue, in fact, that the very existence of listed affiliate marketing providers is thrown into doubt by the raw facts of the share price performances of some of the leading entities. iGB Affiliate Monitor