2024-07-29 09:00:00 ET
Summary
- Eventbrite has struggled to build a moat and capitalize on the events industry. It is also facing competition from other platforms like Meetup and Facebook.
- The company is trying to boost its poor profitability by charging event organizers a new fee. This is a risky tactic, and the paid organizer count is shrinking.
- Suggestions that Eventbrite holds hundreds of millions of net cash is flawed. That cash belongs to event organizers and sits in Eventbrite's accounts payable.
- There's no discernible business value here, in my opinion.
I've long held varying positions in events and ticketing company Eventbrite ( EB ), although it's never been a large holding in my portfolio. I had held this one for a while, as my brokerage statements don't go back far enough to identify when I first bought in. I thought there was a lot of promise for an events company with a community vibe, against big-ticket competitor Live Nation ( LYV ). Of course, Live Nation absorbed the much maligned Ticketmaster, long-time target of entertainer boycotts ( Pearl Jam won't likely be mentioned in any other article of mine ), and lawsuits charging monopolistic behaviour. These have continued into the present, with the U.S. Department Of Justice suing Live Nation in May 2024 ....
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Eventbrite's Net Cash Is An Illusion: Sell