QuinStreet, Inc.: Leading Nowhere

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About: QuinStreet, Inc. (QNST)
by: Kerrisdale Capital Management
This article is exclusive for subscribers.
Kerrisdale Capital Management
Hedge Fund Manager, Long/Short Equity, Value, Special Situations
Summary

QuinStreet’s network of proprietary and affiliated websites feature substantial suspicious and phony traffic, which generate revenue for the company when users click links and fill out forms - boosting QuinStreet’s revenue.

QuinStreet’s recent revenue growth has come almost entirely from a single client – a fact that the market has overlooked amid management silence.

QuinStreet is a low-quality organization with a fundamentally flawed business model.

We are short shares of QuinStreet (NASDAQ:QNST), a web-1.0 adtech firm that acts as a middleman between online advertisers and niche websites. These niche sites attract visitors (leads) who are shopping for,