The Trustpilot share price has dived into record low territory after sellers dominated the trading session to send the stock 8.38% lower on the day. The performance caps another disappointing week for the stock in which the stock shed 12.51% of its opening value. This loss adds to last week’s 8.20% loss, following the stock’s inability to capture sufficient gains to overcome the 14.67% downside move in the week ended 21 March 2022.
The selloff comes as the market digests the contents of its annual financial report, posted on the company website. The company’s revenue grew to $131 million, representing a 29% increase year-on-year. Adjusted EBITDA came in at $3.9m, lower than the $6.1m for the 2020 financial year. Losses for the year grew from $12.3m to $25.9m as the company factored in costs associated with the company’s IPO and share-based compensations.
Despite the expanding losses, three institutional analysts on Wall Street have retained a buy rating for the stock, with a median 12-month price target of 209.33p, translating to a potential upside of 71.02%. This outlook views the current Trustpilot share price as being in an attractive price zone for investors with a long-term view.
The descent into record low territory has occurred after Friday’s 8.38% decline that sent the stock below the 124.1 support (7/22 March lows). This close of the active daily candle completes the measured move from the bearish flag, which commenced from the rejection at 159.2. The penetration close below the 124.1 support level has opened the door for a march towards a potential pivot at the 101.6 price mark (100% Fibonacci extension level of the 27 January – 7 March price swing). If this pivot fails to stop the descent, the 127.2% Fibonacci extension level at 82.2 comes into the picture as potential support.
On the flip side, the bulls need to force the price activity above 124.1, targeting the 5/12 April highs at 159.2 initially. An advance beyond this level is necessary to continue the recovery towards 172.7 (21 March 2022 low) before 191.5 (28 January high) re-emerges as a potential upside target.
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This post was last modified on May 20, 2022, 15:48 BST 15:48