Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys. Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now. Should you invest $1,000 in PointsBet right now?īefore you consider PointsBet, you'll want to hear this. Whether it’s the company’s immense cash burn, capital raising overhang or investors losing interest in its US growth story, PointsBet is now down 31% year-to-date. The PointsBet share price rallied almost 50% between January and mid-February, briefly hitting an all-time high of $17.60.īut things have only gone downhill from there. The question – the big question is when.” An ugly year for the PointsBet share price Any state that has 20 available licenses, PointsBet will get into that state.
MALE HEAD SIDE VIEW LICENSE
We thought we had a license and it was subsequently not – our partner was subsequently not included in the list of licenses that have been handed out. Since its initial public offering in June 2019, PointsBet’s valuation has ballooned to $2.7 billion, even after this week’s sell-off.ĭuring this time, the company has initiated three capital raisings to help fund its US growth plans.Īs the company continues to burn through cash to capture market share in the lucrative US sports betting market, investors might finally be asking, “What’s the end game?”.Īnother factor potentially weighing on the PointsBet share price is its failure to grab an Arizona licence.Īccording to the company’s earnings call, PointsBet CEO Sam Swanell said: Its FY21 results highlighted a 159% increase in revenue to $194.7 million, fuelled by a 314% increase in losses to $164.3 million. PointsBet has followed a “spend money to make money” narrative. The number of cash active clients continued its upwards momentum, bolstered by a 367% increase in US clients to 185,880.įrom a financial perspective, however, PointsBet continued to burn through cash worth $38.1 million in the September quarter. Overall net win lifted 76% to $67.3 million (net win includes promotional costs). The gross win margin (dollar amount received from clients’ losing bets less the dollar amount paid to clients’ winning bets, excluding promotional costs) improved to 11.9% from 10.2%. Group turnover increased 42% on the prior corresponding period (pcp) to $979.9 million.
MALE HEAD SIDE VIEW UPDATE
The first-quarter update reads well at face value, with strong growth across all key operating metrics. Was the first quarter update really that bad? This follows the company releasing its first-quarter trading update on Thursday morning.
Shares in the sports betting darling have tumbled 24.4% in the past two trading sessions. It was even worse in earlier trading with the PointsBet share price falling to a 12-month low of $7.73. The PointsBet Holdings Ltd (ASX: PBH) share price is down another 9% on Friday to $7.85 at the time of writing.