Criteo – Lawsuit scares me – I’m out

Criteo the company I recently wrote an article about, has started a legal battle with the private competitor SteelHouse. So what is it all about? Well you can read it yourself in these two business insider articles: It started with Criteo and then SteelHouse came back with a counter.

The growth numbers Criteo have been pulling, are impressive indeed. But if it was one thing that was very hard for me to understand, it was the inner mechanics of how they generate their revenue. Since I don’t fully understand it, you might say I should not have invested in the first place. I guess I somehow was tempted of all that juice growth, in this case i never really considered any fraudulent behaviour.  And that might be my lesson, but here I am, not any longer comfortable with Criteo’s “black box” as SteelHouse calls it of revenue generation. One lessons I learned in the past is, if you are no longer sure of your thesis, then sell. You can always buy it back later. I sold my full holding as of today’s close.

Now I have way too much cash on my hand (17%), I need to find some new good investments.

Leave a Reply

Your email address will not be published. Required fields are marked *