Why has the Pointsbet share price launched 7% today?

Two children and a dog get set to launch their friend rocketing high into the sky.Two children and a dog get set to launch their friend rocketing high into the sky.

Wednesday has proven a good day for the Pointsbet Holdings Ltd (ASX: PBH) share price.

The stock has leapt a whopping 6.77% at the time of writing to trade at $2.68.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 1.6% right now.

So, what might be driving stock in the bookmarker higher today? Let’s take a look.

What’s driving the Pointsbet share price today?

The Pointsbet share price is taking off on Wednesday, gaining close to 7% despite the company’s silence.

Interestingly, neither the company’s home sector nor its ASX peers are recording such dramatic gains right now.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is currently trading relatively in line with the broader market, gaining 1.5%. Meanwhile, the share price of BetMakers Technology Group Ltd (ASX: BET) is up 3.3%.

But there could be a simple reason behind Pointsbet’s day in the green. The company’s stock plunged around 6% on Tuesday. Thus, today’s gain could be partly due to profit taking.

The past 30 days have been busy for the bookmaker’s stock – it’s hit a high of $2.96 and a low of $2.26 over the last month despite no news being released by the company in that time. Though, that’s about to change.

All eyes will likely be on Pointsbet next Friday when the company releases its update for the fourth quarter of financial year 2022.

Sadly, today’s gains haven’t been enough to boost the Pointsbet share price into the longer-term green.

The stock is currently trading 60% lower than it was at the start of 2022. It has also tumbled 75% since this time last year.

The post Why has the Pointsbet share price launched 7% today? appeared first on The Motley Fool Australia.

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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. has positions in and has recommended Betmakers Technology Group Ltd and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd 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.

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