Online gambling stocks performance was mixed last week, with the sector declining by an average of 1%, although it still outperformed the Nasdaq Composite, which fell by 2%. Catena Media and Raketech posted the strongest gains, while Rush Street and Gambling.com recorded the steepest declines, highlighting another week of varied investor sentiment across the industry.

Overview

  • Average growth – On average, share prices analyzed decreased by -1% 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 +5%, followed by Raketech (+4%).
  • “Loser” – Rush Street and Gambling.com had the worst weekly performance in our analysis, with a change of -9% 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 -3%; with Codere Online (+2%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Evoke is the “winner” with +0.6% while the average share development was -1%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, a decrease of -1%. The winner is Playtech with +1%.
  • Affiliates – On average, affiliates’ shares saw a decrease of -0.1% with Catena Media (+5%) leading and Gambling.com (-8%) coming last.

The share increase of Catena Media

Catena Media’s shares gained during the week after investors continued to react positively to the company’s improving shareholder structure following the disclosure that Nordic Compound Invest had increased its stake above 10% earlier in July. With no negative company announcements during the week and the next quarterly results scheduled for 11 August, the higher ownership commitment appears to have supported market sentiment and helped lift the stock.

The decline of Rush Street shares

Rush Street Interactive’s shares came under pressure last week as investors appeared to take profits ahead of the company’s second-quarter results, which are scheduled for 29 July. With no major corporate announcements during the week following the Alberta launch earlier in July, market attention shifted to earnings expectations, contributing to weaker sentiment ahead of the release.

 

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