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

Sports fans looking at smart phone representing surging pointsbet share price

Sports fans looking at smart phone representing surging pointsbet share price

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.

The post Why is the Pointsbet share price up 8% on the ASX today? appeared first on The Motley Fool Australia.

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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.

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