The Online gambling stocks performance was broadly flat last week, with the companies analyzed gaining just +0.1% on average and underperforming the Nasdaq Composite (+3%). Gentoo Media (+7%) and Catena Media (+6%) led the pack, while Rush Street (-12%) and Gambling.com (-7%) recorded the steepest declines.

Overview

  • Average growth – On average, share prices analyzed increased by +0.1% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by Gentoo Media with an increase of +7%, followed by Catena Media (+6%).
  • “Loser” – Rush Street and Gambling.com had the worst weekly performance in our analysis, with a change of -12% and -7%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (+3%), the average development of the online gambling industry looks “worse”.

Segment-specific developments

  • Online-focused operators – The shares of online-focused operators included in the analysis saw, on average, a decrease of -2%; with Bet-at-Home (+4%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Evoke is the “winner” with +2% while the average share development was +0.2%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, an increase of +2%. The winner is Sportradar with +6%.
  • Affiliates – On average, affiliates’ shares saw an increase of +1% with Gentoo Media (+7%) leading and Gambling.com (-7%) coming last.

The share increase of Gentoo Media

Gentoo Media’s positive share development during the week appears to have been driven by investor positioning ahead of the company’s upcoming Q2 results later in August. Sentiment may also have been supported by expectations of further progress on deleveraging and refinancing, following the company’s previously communicated financial priorities.

The decline of Rush Street shares

The decline in Rush Street Interactive’s shares appears to have been a post-earnings pullback following its Q2 results released on July 29, despite the company reporting record revenue and raising its full-year guidance. With earnings per share only matching expectations, investors may have taken profits after the stock’s strong run, putting pressure on the shares in the following week.

 

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