MENU

Why the EML Payments Ltd share price is rocketing higher today

One of the best performers on the local market on Tuesday has been the EML Payments Ltd (ASX: EML) share price.

In afternoon trade the fintech company’s shares are up 9% to $1.32.

Why are EML Payments’ shares rocketing higher?

With no news out of the company or broker notes that I’m aware of, today’s push higher is likely to be attributable to news out of the U.S. Supreme Court.

According to the Wall Street Journal, on Monday the U.S. Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act that outlawed the operation, advertisement, and promotion of sports gambling.

This ruling has cleared the way for all states to allow gambling on sports events, which will be great news for betting companies and EML Payments.

EML Payments provides payment technology solutions for payouts, gifts, incentives and rewards, and supplier payments.

One significant market for the company is sports betting. Betting companies such as Crownbet, William Hill, Ladbrokes, bet365, and Sportsbet use EML Payments to provide their customers with reloadable debit or virtual cards that allow them immediate access to winnings.

If sports betting explodes in the United States because of the Supreme Court’s ruling, then EML Payments could be positioned perfectly to profit.

Should you invest?

I think EML Payments is a quality company that has quickly established itself as a market-leader in a fast-growing industry.

While the full impact of the Supreme Court’s decision is not yet known, I do agree with the market in judging this to be a huge positive for the company.

But like fellow fintech stars Afterpay Touch Group Ltd (ASX: APT) and Hub24 Ltd (ASX: HUB), EML Payments’ shares do come with significant growth already built in. This does make its shares a reasonably high risk investment option and one that may be unsuitable for the average investor.

Investors may want to wait and see if the company comments on this latest development before buying shares because of it.

Looking for the next EML Payments? Don't miss these stars of the future.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Emerchants Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!