Source

,

Sector

Technology

Industry

Software – Application

Region

Europe

UK

Market Cap

1.130bn


Key Issues

  • Fraudulent & coercive business model: Trustpilot pressures businesses to pay for premium services by leveraging fake or manipulated reviews; profiles cannot be removed, granting Trustpilot perpetual IP rights.
  • Systematic review manipulation: High-volume 5-star reviews are often fabricated; AI analysis shows >80% of positive reviews for certain firms likely fake, while 1-star reviews remain mostly authentic, creating artificial pressure to purchase services.
  • Financial & regulatory vulnerability: Excessive sales/marketing spend (45% of revenue), declining relevance vs. Google, and growing legal risks (terms of service disputes, consumer deception claims) threaten long-term viability.

Investor Takeaways

  • Business is structurally unsustainable; legal challenges could undermine revenue model.
  • Reliance on premium services and fake review ecosystem is a liability, especially under regulatory scrutiny.
  • Stock volatility around reporting events offers potential short opportunities; ideal short entry near recent H1/2025 peak.

Entry Date

2025-09-23 19:00:00

Entry Price

237.4

GBp

Current Date

2025-12-04 11:30:00

Current Price

129.2000

GBp

Close Date

Close Price

GBp

Tenure

71.7 days

Performance

45.58%