Gan stock price dip as they lose partnership with FanDuel. GAN released its Q2 revenue results and made an announcement that it would be losing FanDuel as a client by the end of the month. The company saw a growth in revenue in the second quarter of the year but also incurred losses from a quarter affected heavily by the global pandemic.
Full Answer
Earnings are out, and investors aren't happy
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
What happened
Shares of Gan Ltd ( NASDAQ:GAN) fell as much as 19.7% in trading on Friday after reporting fourth-quarter 2020 financial results. At 1:30 p.m. EDT, shares were down 17.9%.
So what
Fourth-quarter revenue fell 16.8% to $8.9 million, and the company swung from a net income of $2.4 million to a loss of $8.3 million. The drop in revenue was primarily driven by the ending of a partnership with WinStar World Casino. Analysts were expecting revenue of $11.8 million, so that's where the real disappointment comes from.
Now what
The revenue drop is disappointing and was driven by the fact that Gan's partners didn't ramp up online sports betting and iGaming activities in 2020. But partners like Penn National, Wynn Resorts, and Churchill Downs are expanding operations as quickly as they can and will help drive Gan's revenue in 2021.
Key Points
GAN announced a stock buyback, but a recent product launch is the really big news to watch.
NASDAQ: GAN
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What happened
Shares of GAN Limited ( GAN 0.77% ), which provides software services to the casino sector, rose a quick 10% in morning trading on Dec. 1. There were two pieces of news out of the company that probably helped spur that advance, but one is likely to be more important than the other from a business perspective.
So what
After the close of trading on Nov. 30, GAN announced that it was initiating a $5 million share repurchase program. Investors generally like to see stock buybacks, since reducing the share count allows the company to spread its earning over fewer shares. That has the effect of boosting earnings, though it does little to actually build the business.
Now what
While it's hard to decipher which news update had the bigger impact on GAN's stock price today, the new product launch is clearly the more important one for the company's business.
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Earnings are out and investors are jumping ship
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
What happened
Shares of GAN Limited ( NASDAQ:GAN) fell as much as 20.5% in trading Friday after reporting second-quarter 2020 results. Shares pared some of those losses as the day wore on and were down 16.9% at 2:00 p.m. EDT, which was still a big loss for the day.
So what
Second-quarter revenue jumped 99% to $8.3 million as U.S. operations more than doubled. But net loss was $8.8 million, up from a $1.9 million loss a year ago, and the $0.33 loss per share was well above the one-cent loss that analysts expected.
Now what
There's no question that GAN Limited is a growth stock by any measure after these results. The questions about the stock are more around how much the company should be worth. GAN's market cap is currently around $600 million, which is more than 15 times expected revenue.
What is a Gan?
IRVINE, Calif., October 15, 2021--GAN Limited (the "Company" or "GAN") (NASDAQ: GAN), a leading full-service gaming software-as-a-service provider to the real money internet gaming, online sports betting, retail sports betting, and simulated gaming industries today announced it has signed a binding terms sheet to with Red Rock Resorts, Inc. ("Station Casinos" or "Station") to build and deploy the infrastructure for Station’s "STN Sports" online sports platform, mobile applications, and retail Ov
What is a GAN in 2021?
IRVINE, Calif., July 07, 2021--GAN Limited (the "Company" or "GAN") (NASDAQ: GAN), a leading full-service internet gaming software-as-a-service ("SaaS") provider to the real money internet gaming, online sports betting, and simulated gaming industries, today announced strong preliminary results for the second quarter of 2021 driven by its new Business-to-Consumer ("B2C") segment, which comprises Coolbet. Based on preliminary financial results, the Company currently expects to report second quart
How much is the online gambling market worth in 2020?
It reached $2.0 billion in revenue in 2020, according to Mordor Intelligence. Globally, the online gambling market is estimated to be worth $66.7 billion and is projected to grow to $92.9 billion in 2023, according to Statista. Motley Fool • 9 days ago.
Can you invest in the operators or in the infrastructure?
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