What Happened?
Shares of gaming, betting and entertainment company Bally's Corporation (NYSE: BALY) jumped 4.2% in the morning session after the stock rebounded from a recent sell-off, aided by positive commentary from its CEO regarding potential acquisitions. The recovery follows a 7.6% drop the previous week that was driven by broader economic concerns.
Adding to investor optimism, CEO Robeson Reeves spoke at an investor event on September 8, stating that Bally's can be a “great consolidator” in the UK igaming market and hinted at further M&A. Reeves highlighted the company's position as the number two igaming operator in the UK, holding a 14% market share. These strategic comments appear to be providing a positive catalyst for the stock after its recent decline.
After the initial pop the shares cooled down to $10.12, up 3.2% from previous close.
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What Is The Market Telling Us
Bally’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 15% on the news that it rebounded from a significant sell-off the previous week that was driven by broader economic concerns.
The stock is recovering after falling 7.6% last week, which extended its year-to-date losses to almost 50%. The bulk of last week's losses occurred on Friday amid a broad-based market sell-off following a weak August jobs report. In the absence of any new company-specific news to explain Monday's rally, the upward movement appears to be a technical rebound as investors might be buying the dip. The company has been contending with several issues and recently posted a loss in the second quarter, even as its revenues surpassed estimates.
Bally's is down 48% since the beginning of the year, and at $10.12 per share, it is trading 54.2% below its 52-week high of $22.07 from November 2024.
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