Bragg Gaming Group (TSX: BRAG) is a Toronto-based company that provides business-to-business gaming solutions around the world. Today, I want to look at the volatility this gaming stock has run into to start this week. Let’s jump in.
Why Bragg Gaming dipped in yesterday’s trading session
Shares of Bragg Gaming stock dropped 12% by the close of the trading session on January 24. The stock was down another 4.3% in early morning trading today. This has pushed the stock into negative territory for 2022. Its shares are now down 74% in the year-over-year period.
In early January, Bragg Gaming introduced its content from ORYX Gaming in the United Kingdom for the first time since going live with 888casino. That came after receiving its supplier licence in the United Kingdom. ORYX Gaming is a Bragg Gaming company. Its offerings have now been added to the 888casino, and users can look forward to new releases going forward.
Bragg Gaming stock had put together some promising momentum in the middle of last week. However, some analysts have been less enthusiastic. Bragg and its peers in the gaming sector have experienced a sharp and steady selloff since the middle of 2021. The company has seen some drop off in revenue in top countries like Canada, Italy, and the United Kingdom However, there has been some promise in central European countries like the Netherlands.
That said, Bragg Gaming is still geared up for strong growth and promising market penetration. This should entice investors as the stock suffers in the near term.
Investors should get in on the gaming business
Investors should have had their eyes on the online casino space for a while now. Canadian companies have come and gone due to consolidation, making Bragg Gaming stock one of the few options on the TSX these days.
Last year, market researcher Facts&Factors projected that the global online gambling and betting market would grow from US$50 million in 2019 to US$100 billion in 2026. That would represent a solid CAGR of 10% over the projected period.
Back in August, I’d looked at another gaming stock in the form of Pollard Banknote. This Winnipeg-company started printing for government lotteries in the mid-1980s. Its shares have dropped 8.2% in the year-to-date period. However, the stock is still up 2.6% from the previous year.
Should you buy the dip in Bragg Gaming today?
Investors can expect to see Bragg Gaming’s next batch of earnings in late March 2022. This gaming stock has been hit hard over the past year. However, you might want to consider this a solid buy-low opportunity. Shares of Bragg Gaming has an RSI of 43 at the time of this writing. It has hovered around technically oversold territory since the middle of November. This is a gaming stock I’m monitoring closely during this period of significant volatility.
