GAN - Why GAN Limited Stock Dropped as Much as 10% in Morning Trading Today
Shares of GAN Limited (NASDAQ: GAN) , which provides online gambling services to other companies and consumers, fell as much as 10% out of the gate on Nov. 12. Around 90 minutes into the trading day the stock was still off by roughly 8%. The company's third-quarter 2021 earnings update, released after the close on Nov. 11, was the likely cause of the pessimism.
GAN Limited's third-quarter revenues came in at roughly $32.3 million, up from $10.3 million in the same quarter of 2020. That represents phenomenal growth. However, the gambling services provider is in growth mode and spending heavily on expansion efforts, including bringing new clients online. So, its loss per share rose to $0.19 in the third quarter of 2021 versus a loss of $0.10 a year earlier. This isn't shocking, even though it might not make investors all that happy.
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Why GAN Limited Stock Dropped as Much as 10% in Morning Trading Today