BETCO: Betting on the Wrong Strategy

Negative case on BETCO - It still holds

Today, Better Collective (BETCO) adjusted its financial guidance for Q3 ’24 and the full year 2024 downwards. The share has reacted negatively by about -35%.

We believe the reason for the lowered guidance stems from Google's site reputation abuse spam policy update on May 7th, which heavily affects BETCO’s partner business.

When we noticed that the market did not seem to react to the spam update from Google and how it would affect BETCO we wrote a negative case on the company and sent it to a handful of professional investors.

In light of today’s share price reaction and the downgraded guidance, we found it prudent to share the case write-up broadly. At that point, the share price stood at SEK 295; now, it is at SEK 144 (down 52%).

Here are some of the slides from the negative case

Get access to the full case and further discussion ⬇️