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LADBible shares drop despite increased popularity on the platform.
LADBible has taken the crown of modern, trendy media. With millions of clicks a day and their global audience increasing, why is their stock heading in the wrong direction?
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LADBible has taken the crown of modern, trendy media. With millions of clicks a day and the online growth they have been seeing, it’s a bit of a surprise that stock is decreasing, or is it?
You might not have heard of LADBible before. If you have, you probably didn’t realise they were publicly traded.
LADBible is currently trading under the name LBG Media at around 101.98p, entering the London Stock Exchange in late 2021 at a price around 190p.
The media company increased their global audience by 13% in 2021 and their content views went up 97% to a total of 62.9 billion views. They are also expected to grow their net profits year-on-year and have the potential to chase opportunities in North America.
With this much popularity for the company, why has it been such a disaster for investors so far?
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It’s difficult to tell at this point. It could be to do with advertiser space and the lack of revenue in this area, especially as this will likely form most of the company’s revenue.
A lot of LADBible’s revenue is from direct marketing with clients, a marketing method not as common in similar companies like BuzzFeed that mainly use indirect marketing. Indirect marketing is a strategy where you use the platform you are on like Snapchat or Instagram to carry out all the advertisements on your content.
LADBible’s advertising strategy just might not be working for them right now. They my well have started off with an overly optimistic IPO. Either way their stock has dropped a lot.
Despite this, I still think this stock has a huge potential for growth.
Written by Nial Dixon
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