/>iI dont want to beat this horse to death but as I spend time looking into the DMS bankruptcy I am really shocked by what I am seeing here.
In February, 2021 its stock (adjusted for a recent 1:15 split) was trading at $229.05.
Today the stock closed at less than 11 cents.
$0.11 dollars per share.
Its market cap was once roughly $1BB.
Its market capitalization today under $500k.
In 3.5 years this company went from a giant to a dwarf to a cadaver.
Why?
I have many theories and guesses–and they all involve an inability to conform business practices to evolving legal landscape– but I do not know for sure.
What I do know is that smart companies that are planning to survive the new one-to-one regime have made several key decisions (including some that might damage revenue in the short term):
- Focused on valid consented traffic from consumers who were NOT tricked into providing it;
- Cut vendors that did not provide valid leads;
- Moved to owned and operated websites;
- Focused on PPC, where it is truly consumer initiated;
- Built a network.ecosystem of compliant peers and partners;
- Worked with quality counsel.
Still lots of money to be made out there.
But learn the lessons that are to be learned from this.
More soon.
