Gaming stocks had quite the day on Tuesday, with Bragg Gaming Group (TSX:BRAG) and Enthusiast Gaming Holdings (TSX:EGLX)(NASDAQ:EGLX) each moving in opposite directions. The former jumped 12%, while the latter fell by 14% as of writing.
What happened?
Each of these gaming companies had their own results come in over the last few days. However, Bragg stock managed to follow up its strong results with news of more international deals. The company’s iGaming content is now live in the Bahamas. This comes just days after entering the Italian market as well.
Enthusiast Gaming stock, however, didn’t win over investors during its latest earnings results. While revenue soared 130% year over year for the year, and profit was up 102%, news of an internal shakeup likely sent shares downwards. The company’s president along with a board member announced their resignations.
So what?
On the surface, Enthusiast Gaming stock and Bragg Gaming stock both seem to be quite similar. The pair reported record-breaking results, with Bragg announcing its results about three weeks ago. However, growth wasn’t as insane as Enthusiast’s, which was a 14.4% increase in year-over-year revenue.
However, what it seems that Bragg has over Enthusiast is expansion. The company continues to expand throughout Europe, providing it with a diversified balance sheet. It now has a total addressable market of US$13.5 billion, according to its latest earnings results.
Now what?
Analysts weighed in on Enthusiast’s results, stating it still maintained substantial growth, even though it was in line with estimates. However, at least one analyst stated that the company isn’t likely to reach breakeven level for its EBITDA in 2022. However, this could be achieved by next year. This led to a downgrade of the stock’s target price.
Despite the downgrade, it’s still far above where Enthusiast trades today at $3.50. As for Bragg stock, analysts certainly have the Ontario market to look forward to as it enters the market next month. Meanwhile, it trades at $9.65 as of writing, only climbing higher with today’s news.
Shares of Bragg stock were up 13% as of writing, with Enthusiast stock down 9%.
