Why did the Pointsbet share price surge 12% on Wednesday?

We check what may be behind the betting technology company's surge this morning.

| More on:
A man in a suit looks surprised as he looks through binoculars.

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 having another strong day this Wednesday
  • But many ASX tech shares, including Pointsbet, are doing even better
  • We check what might be at play

The S&P/ASX 200 Index (ASX: XJO) has had another strong day so far this Wednesday. During this trading session, the ASX 200 has gained a healthy 0.4% at the time of writing, putting it back above 6,800 points. But the Pointsbet Holdings Ltd (ASX: PBH) share price has performed even better.

Pointsbet shares closed at $2.22 each yesterday. But the gaming company opened at $2.23 this morning before rocketing as high as $2.50 a share, a 12.5% gain.

As it currently stands this afternoon, the Pointsbet share price has cooled somewhat from these illustrious heights. But the company is presently still up a robust 3.6% at $2.30 a share.

So what has kicked the Pointsbet share price so comprehensively higher today?

Why did the Pointsbet share price surge 12% this morning?

Well, we can't be sure, unfortunately. We did get an update from Pointsbet today, released just before market open this morning. But this update only served to inform shareholders that the company is scheduled to hold its 2022 annual general meeting tomorrow. Hardly market-moving stuff, one would assume.

However, we can look at what is happening to some other ASX tech shares for more ideas. Pointsbet isn't the only ASX tech share performing well today.

We've also seen shares like Altium Limited (ASX: ALU), HUB24 Ltd (ASX: HUB), Redbubble Ltd (ASX: RDB), and Brainchip Holdings Ltd (ASX: BRN) see big jumps in valuation as well. Many of these share prices, like Pointsbet's, also spiked before calming down during the afternoon.

This could be a result of what happened to US tech giant Netflix Inc (NASDAQ: NFLX) shares overnight.

As my Fool colleague Catherine covered this afternoon, Netflix reported its quarterly earnings last night (our time). After some disappointing results earlier in the year, Netflix seemed to delight investors with its latest numbers.

For the third quarter of 2022, the company managed to add an additional 2.41 million net subscribers. It also announced revenues of US$7.93 billion, up 5.9% year on year.

These results saw the Netflix share price rise 14% in after-hours trading, boosting the futures market of the entire NASDAQ Index.

This seems to have given the entire ASX tech sector a shot in the arm today, which could explain the fortunes of the Pointsbet share price this Wednesday.

Whatever the true reason behind the success of the Pointsbet share price today, no doubt investors will be pleased with what they are seeing.

At the current Pointsbet share price, this ASX 200 gaming company has a market capitalisation of $678 million.

 

Motley Fool contributor Sebastian Bowen has positions in Netflix. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Hub24 Ltd, Netflix, Pointsbet Holdings Ltd, and REDBUBBLE FPO. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Netflix and 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 Technology Shares

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Technology Shares

This ASX robotics stock just crashed 49% amid $1.1b blow

What is causing investors to hit the sell button today? Let's find out.

Read more »

A person with a round-mouthed expression clutches a device screen and looks shocked and surprised.
Earnings Results

Guess which ASX tech stock is rocketing 22% today

What is getting investors excited today? Let's see what is happening.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Leading broker upgrades Pro Medicus shares to buy rating

Analysts at Bell Potter think this tech stock is a top buy right now.

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
AI Stocks

$8,000 invested in Brainchip shares five months ago is now worth…

Brainchip shares have delivered some sizzling gains since September with plenty of volatility!

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Earnings Results

Pro Medicus share price storms higher on record-breaking results

Investors are cheering on this tech company's latest results.

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Small Cap Shares

The ASX small-cap stock trading at 'half of the earnings multiple of industry leaders'

A leading fund manager sees a lot of untapped value for this soaring ASX small-cap stock.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Earnings Results

Guess which ASX All Ords stock just jumped 20%

Why are investors buying this tech stock on Wednesday? Let's find out.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Technology Shares

3 reasons to buy this resurgent ASX 200 tech stock today

A leading investment expert expects more growth ahead for this surging ASX 200 tech stock.

Read more »