Why has the Betmakers share price crashed 15% in a month?

This betting technology company's shares have fallen heavily in recent weeks…

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The Betmakers Technology Group Ltd (ASX: BET) share price was a relatively positive performer on Wednesday.

Although the betting technology company's shares ended the day flat at 39 cents, this was significantly better than the majority of the market.

For example, the All Ordinaries index lost 2.5% of its value during today's session.

However, it is worth noting that the Betmakers share price isn't beating the market on a monthly basis.

Since this time in August, the company's shares have shed 15% of their value.

Why is the Betmakers share price down 15% in a month?

The main weakness in the Betmakers share price in recent weeks appears to have been driven by the release of its full year results.

Although Betmakers reported a massive 371% increase in revenue to $91.7 million, its EBITDA loss was almost as much at $86 million. This was up from a loss of $18.1 million a year earlier. That means for every dollar of revenue it brought in, it lost 94 cents.

Since then, short sellers have been adding to their positions, putting additional pressure on the sell side of the equation.

At the last count, the company had 14.1% of its shares held short. This made it the second most shorted share on the Australian market, just behind Flight Centre Travel Group Ltd (ASX: FLT).

Short sellers appear concerned about the company's cash burn and how long its current $87.5 million cash and cash equivalents balance will last.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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