By studying financial markets, you sometimes stumble upon some pretty exciting tools and companies that can yield a fair return. Trading, in general, is often compared to gambling, and traders are labeled as having a bit of a gambling problem or ludomania. Yes, it might sound a bit harsh, but it's worth thinking of.
For example, open stock screener and tweak the filters to find a cool company. Someone might argue that this is almost the same as pulling the handle of a slot machine, hoping for those three lucky cherries.
But guess what? This is how you can find some seriously promising stocks. In general, companies frequently land on lists that show some inadequate figures. But upon closer inspection, it typically reveals that it's due to a second-tier IPO or maybe some intriguing financial reports have hit the scene. This happened on August 17, 2023, when Gambling.com Group Limited (NASDAQ:GAMB) unexpectedly showed up on the roll of companies with the biggest changes in a day and a week.
Gambling.com Group Limited is a company engaged in developing and managing online casinos, bookmakers, lotteries, and other gambling games. They're big shots in the online gambling scene, holding licenses to operate in places like the UK, Malta, Curaçao, and Gibraltar.
The company's main advantage is that it provides its customers with a diverse range of gambling games to suit every taste and purse. It includes slots, table games, video poker, roulette, blackjack, baccarat, dice, and more. All games are available both on mobile devices and PC.
But here's what really sets Gambling.com Group Limited apart: they're all about safeguarding user data. The company uses top-notch encryption and authentication technologies to lock down all transactions and customers’ personal data. In addition, they regularly audit their security systems to ensure maximum protection from hacker attacks.
In general, Gambling.com Group Limited is a successful company that continues to develop and improve its products to meet the needs of players around the world.
So, what's the deal with their sudden appearance on the growth list? It's simple – it released the Q2 2023 earnings report with the results exceeding analysts' expectations. The revenue indicator surged past expectations by 60%. Earnings per share reached the mark of 0.17, and revenues amount to $25.97 million.
In the span of a year, this company's value has cranked up by over 60%.
The latest round of reports has been pouring gasoline on the fire, igniting price hikes and attracting a bunch more investors. Just like any other company, Gambling.com Group Limited experiences price growth thanks to ramping up their profits. The reports confirm this altogether.
Also, in the USA, in recent years, there has been a rise in the popularity of online gambling. As it gains traction, the companies associated with this industry continue to grow in price. Look at Churchill Downs Incorporated (NASDAQ:CHDN) – despite facing a little dip, it still shows promising results. Same can be said about DraftKings Inc. (NASDAQ:DKNG); it's got some dips, but zoom out, and it's still rising year after year.
GAMB isn’t twiddling its thumbs, either. They systematically expand its business – open new offices, launch fresh products. In addition, the company is actively polishing its reputation by improving the quality of customer service or cracking down on fraud. According to the survey, most of the players pay more attention to reliable organizations with solid guarantees.
As a result, investors who study macroeconomic data and monitor changes in legislation invest more money in the company, and that's juicing up its value.
In addition, the company is actively developing its brand, pulling in new players with flashy ads and promos. For example, in 2020, they rolled out a loyalty program that drops bonuses for every amount of money spent.
Gambling.com has a ton of growth potential. Their products are a global hit, not just confined to the USA, and the company continues to expand its customer base.
An ace up their sleeve is the innovative approach to game development. The company is constantly looking for new ways of making games more fun and exciting for players. They also actively collaborate with other gambling bigwigs to create new stuff. That's boosting their internal cash flow, and the net profit is growing.
Investors' expectations in the latest report showed that they are positive and continue to add the company's shares to their investment portfolios. Expectations are high, and while future reports might soar even higher, that doesn't mean the company's numbers are going to nosedive. Their pace of growth is looking good, and the strengthening of influence in its niche opens up new horizons for the company.
In a nutshell, the market segment that Gambling.com Group Limited occupies now has many more prospects that the company will definitely use.