Online gambling stocks performance was slightly negative last week, with the companies in our analysis falling by an average of 0.6%. Catena Media led the ranking with a 9% gain, followed by Betsson at 8%, while Rush Street recorded the largest decline at 12%. Overall, the sector performed better than the Nasdaq Composite, which fell 2%.

Overview

  • Average growth – On average, share prices analyzed decreased by -0.6% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by Catena Media with an increase of +9%, followed by Betsson (+8%).
  • “Loser” – Rush Street and OPAP had the worst weekly performance in our analysis, with a change of -12% and -8%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (-2%), the average development of the online gambling industry looks “better”.

Segment-specific developments

  • Online-focused operators – The shares of online-focused operators included in the analysis saw, on average, a decrease of -2%; with Betsson (+8%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Entain is the “winner” with +2% while the average share development was -2%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, a decrease of -0.1%. The winner is Evolution with +5%.
  • Affiliates – On average, affiliates’ shares saw an increase of +2% with Catena Media (+9%) leading and Grandstand (-8%) coming last.

The share increase of Catena Media

Catena Media’s shares recovered during the week following a sharp sell-off on 19 October, triggered by disappointing preliminary Q3 results and a cut to its financial targets. The company also announced further share buybacks on 19 October, which may have provided some support, although a direct link to the recovery cannot be confirmed.

The decline of Rush Street shares

Rush Street Interactive’s shares came under pressure during the week as analysts raised concerns about the outlook for the gambling sector. On 20 October, JPMorgan cut its price target for the company from USD 30 to USD 22, citing difficult market conditions ahead of Q3 earnings reports. The downgrade may have added to investor concerns about profitability and higher marketing spending, although its direct impact on the share price is difficult to measure.

 

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