Why has the BetMakers (ASX:BET) share price dumped 30% so far this year?

Could this be dragging on BetMakers' stock?

Key points
  • The BetMakers share price has tumbled from 83 cents to 58 cents since the start of 2022 
  • That's despite multiple seemingly positive updates having been released by the company 
  • However, its rising short interest might be weighing on its stock's value 

This year so far has been rough on the BetMakers Technology Group Ltd (ASX: BET) share price.

That's despite multiple seemingly positive announcements hitting the market from the company.

At the time of writing, the BetMakers share price is 58 cents, 5.45% higher than its previous close. However, that's also 30.12% lower than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.15% today and has fallen 8% year to date.

Let's take a look at what's been going on with BetMakers through 2022 so far and what could be weighing on its share price.

A disappointed female investor sits in front of her laptop and puts her hand to her forehead and closes her eyes in disappointment over share price falls.

Image source: Getty Images

What's dragging the BetMakers share price down in 2022?

The final week of January was a busy one for BetMakers. Over those 7 days, the company released 3 price-sensitive updates to the market.

First, it announced that its agreement to exclusively provide fixed odds betting for horse racing in New Jersey had been extended to cover 15 years. Additionally, under the new agreement, BetMakers would be able to sub-licence the betting product.

Next, the company released its results for the second quarter of financial year 2022, which saw it reporting its best quarter of revenue ever.

Over the 3 months ended 31 December, BetMakers recorded $24.6 million of cash receipts – a 17% increase on that of the September quarter and 521% more than the previous December quarter.

Finally, it announced that its commercial agreements with the Waterhouse Group brought in $8.2 million of revenue over the first half of this financial year.

As a result, BetMakers expects performance payments of around 14 million of options will be met in the second half – finalising all equity-based payments to the Waterhouse Group relating to its core products.

The BetMakers share price fell between 0.2% and 2.4% on all 3 announcements. There's been no more price-sensitive news from the company in 2022.

However, there might be something else dragging its shares' value down. BetMakers' stock is still one of the most shorted shares on the ASX.

At the time of The Motley Fool Australia's latest weekly short selling update, the company had a short interest of 11.3%.

That means many market participants are betting against its stock, which could be weighing on investors' confidence.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended 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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