Why is the Pointsbet share price up 8% on the ASX today?

Pointsbet shares are smashing the ASX 200 today.

| More on:
Sports fans looking at smart phone representing surging pointsbet share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 is very lukewarm so far this Thursday 
  • But the same can't be said for the Pointsbet share price 
  • Pointsbet shares have rocketed close to 10% today. What's going on? 

It's been a lukewarm day so far for the S&P/ASX 200 Index (ASX: XJO). At the time of writing, the ASX 200 is up by 0.12% after initially rising far more decisively this morning. But that hasn't stopped the Pointsbet Holdings Ltd (ASX: PBH) share price from enjoying a cracking day this Thursday.

At present, Pointsbet shares are on fire, having rocketed a pleasing 7.7% so far today to $3.07 a share. That comes after the gaming tech company closed at $2.85 a share yesterday and opened at $2.98 this morning.

So why is the Pointsbet share price having such an impressive performance today?

Why is the Pointsbet share price on fire this Thursday?

Well, this is a rather strange occurrence because there has been no new news out from the company so far today. Or indeed this week. In fact, the piece of news we got out of the company was the quarterly activities report Pointsbet released last week on 29 July.

As we went through at the time, this report showed the company's total net win increasing by 41% year on year to $85.8 million. Sports betting net wins were up 32% to $78.5 million, while overall turnover rose to $1.3 billion for the quarter, coming in far above the $986 million the company recorded in the corresponding quarter of FY2021.

But even so, investors were not impressed with this update at the time. As we noted last week, the release of this report resulted in Pointsbet shares falling 11% on the day it was released, and by a further 14.15% the following day.

So perhaps investors have changed their minds this week, and have decided to give Pointsbet shares another chance.

ASX 200 tech shares shoot the lights out on the ASX today

We are also seeing many other ASX tech shares perform well today though. The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently the best performing sector on the ASX 200 this Thursday. It's up more than 2% so far. This has seen many ASX tech shares shoot the lights out.

Take Block Inc (ASX: SQ2). Its shares are up 9.3% at over $126. Life360 Inc (ASX: 360) and EML Payments Ltd (ASX: EML) are both up 5.3% and 7% respectively. Zip Co Ltd (ASX: ZIP) was up close to 10% earlier today but has since cooled off somewhat.

So it's possible that Pointsbet shares have simply been caught up in a wave of goodwill towards ASX tech shares today too.

Whatever the reasons for Pointsbet's stellar performance this Thursday, no doubt it is being welcomed by shareholders. 

At the current Pointsbet share price, this ASX 200 tech share has a market capitalisation of $940 million.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments, Life360, Inc., Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza
Dividend Investing

Own Domino's shares? Today is pay day!

Eligible Domino’s shareholders can expect some welcome passive income today.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.
Consumer Staples & Discretionary Shares

How a potential demerger could deliver a 10% upside for this ASX 200 stock

Investors might have even more reasons to love this ASX 200 stock if rumours are true.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Consumer Staples & Discretionary Shares

Why Goldman Sachs expects market-beating returns from Super Retail shares

Goldman Sachs thinks this retail share could offer big returns for investors.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
52-Week Highs

Why is the A2 Milk share price up 46% year to date and at a 52-week high?

This infant formula company's shares have delivered the goods this year.

Read more »

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
Consumer Staples & Discretionary Shares

2 things I'm waiting for before buying Coles shares

I'm waiting for two things before I add Coles to my share portfolio.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Consumer Staples & Discretionary Shares

If I'd put $5,000 in Wesfarmers shares at the start of 2024, here's what I'd have now

Are investors smiling this year? Let's see how its shares have performed.

Read more »