Trustpilot Share Price Forecast as Investors Lose Trust

Summary:
• What is the outlook of the Trustpilot share price after crashing hard in the past few months? We explain what to expect next.

The Trustpilot share price has collapsed, signaling that investors are losing trust in the company. The TRST stock dropped by over 16% on Tuesday even after the firm published strong results. The shares are trading at 137.8, which is about 72% below its all-time high. As a result, its total market value has crashed to 552 million pounds. It has also lagged behind the FTSE 100 and FTSE 250 indices.

Trustpilot is a leading British company that allows people to leave reviews of different companies. It is one of the most visited reviews website globally. On Tuesday, the company said its bookings had jumped by 27% year-on-year to $149 million. Its revenue rose by 29% to $131.4 million, while its annual revenue rose to $144 million.

Other key numbers were also promising, with active domains rising by 34% to 84,000 while reviews rose to 167 million. The TrustPilot share price crashed hard on Tuesday because of the company’s narrow path to profitability. Its loss rose to $25.9 million from the previous $12.3 million as the cost of doing business rose. 

There are several concerns among investors. The most important one is the rising competition in the industry. For example, companies like Facebook and Google have ramped up their investments in the sector. As a result, today, most people rely on reviews from Google to find credible reviews. Another concern is that growth companies will struggle as Fed and BOE raise rates.

Trustpilot share price forecast

The daily chart shows that the TrustPilot share price has been in a strong bearish trend in the past few months. It fell to an all-time low of 125p, which was about 73% from its all-time high. It has also formed what looks like a bearish flag pattern, which is usually a bearish sign. It has also crashed below the 25-day and 50-day moving averages.

Therefore, the stock will likely keep falling in the near term as bears target the next key support level at 100p. On the flip side, a move above150p will invalidate the bearish view.