What Happened?
Shares of online casino and sports betting company Rush Street Interactive (NYSE:RSI) jumped 19.1% in the afternoon session after the company reported second-quarter results that topped Wall Street estimates and raised its full-year revenue guidance. The company's revenue climbed 22% to $269.2 million, and it reported a net income of $28.8 million, a significant turnaround from a net loss in the same quarter last year. This growth stemmed from a 25% increase in its online casino business and a 15% rise in online sports betting. The strong performance bucked a wider trend, as traditional casino operators' stocks declined, highlighting a divergence within the gaming industry. In response to the strong quarter, Wall Street analysts from firms like Needham and Oppenheimer raised their price targets on the stock.
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What Is The Market Telling Us
Rush Street Interactive’s shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for Rush Street Interactive and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 21% on the news that the company reported second-quarter earnings results. Rush Street Interactive blew past analysts' revenue and EPS expectations. The top line was driven by balanced contributions from icasino and online sports betting products. The quarter also saw a healthy growth in player base, especially in North America, where MAUs (monthly active users) came in at 164,000. Zooming out, this was an impressive quarter that should delight shareholders.
Rush Street Interactive is up 40.1% since the beginning of the year, and at $19.25 per share, has set a new 52-week high. Investors who bought $1,000 worth of Rush Street Interactive’s shares 5 years ago would now be looking at an investment worth $1,818.
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