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What happened with the Betmakers (ASX:BET) share price this week?

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The Betmakers Technology Group Ltd (ASX: BET) has been an interesting performer on the ASX this week. This ASX share has drawn a lot of attention over the past month, largely thanks to the Betmakers share price appreciating 25% since mid-March.

We have seen significant volatility in Betmakers shares just this week, with the company hitting a new 52-week (and all-time) high of $1.28 yesterday and a low of $1.12 a share on Tuesday. That’s more than a 12% difference in just a couple of days, enough to give anyone an ASX whiplash (Mickey Rourke style).

But any long-term investor probably doesn’t mind too much. Betmakers shares are up almost 75% year to date, and up a staggering 577% over the past year. Talk about a winning hand!

So what’s been going on with the Betmakers share price this week?

Why is the Betmakers share price at all-time highs?

There hasn’t actually been any major news or developments out of Betmakers Technology this week that might easily explain its rather erratic share price movements. However, the Betmakers share price has been enjoying a couple of tailwinds for a few weeks now.

The first was its 22 March inclusion into the All Ordinaries Index (ASX: XAO). When an ASX share joins a major index like the All Ords, it usually gives the company something of a short-term boost. That’s because many investors, including international ones, use these indices as hunting grounds for their next investment. Thus, if a company joins, it usually increases the said company’s profile. It also means that any index funds that track the index in question have to buy into the company as well. 

Secondly, Betmakers gave an investor update at the end of last month that was well-received by investors. This update covered the 6 months to 31 December 2020. The company reported that revenues grew by an impressive 67% over the period, and it expects growth of a further 25% for the quarter ending 31 March 2021. 

The Betmakers share price responded very positively to this news and has been rising ever since, despite some minor pullbacks like what we saw on Tuesday.

At the time of writing, the Betmakers Technology share price is sitting at $1.23 after rising 3.8% today so far. At this pricing, Betmakers has a market capitalisation of $946.2 million and a trailing dividend yield of 2.87%.

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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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