Please ensure Javascript is enabled for purposes of website accessibility

Why GAN Limited's Shares Jumped 18.8% on Monday

By Travis Hoium – Jun 1, 2020 at 4:01PM

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

Online gambling is hot with investors right now.

What happened 

Shares of GAN Limited (GAN -1.42%) jumped another 18.8% on Monday as the online gambling platform company continued to attract investor attention. Shares settled slightly late in the day but were still up 10.6% at 3:40 p.m. EDT. 

So what

There wasn't any specific news out about GAN Limited today, but there's a drumbeat of potentially positive news from around the U.S. States have not only been moving to open up online gambling, but they seem to have more incentive to do so now that budgets are likely to be under pressure in 2020. 

Person betting on soccer on a mobile device.

Image source: Getty Images.

Michigan is the latest to accelerate its online gambling hopes, accepting applications for licenses to operate in the state. Regulators are still saying they'll have online gambling up and running in 2021, but are hoping to complete the process sooner. 

Now what

High-growth stocks like GAN Limited are attracting a lot of investor attention right now because there are so few of them available. But investors see an opportunity in the growth of online gambling and service providers like GAN, which have the opportunity to generate SaaS-style margins in the gambling business. Right now, it looks like this is more of a momentum play than a company that's moving higher because of tangible news or earnings, but that isn't slowing down the stock today. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GAN Limited Stock Quote
GAN Limited
$2.08 (-1.42%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.