GAN - Why GAN Limited Stock Fell 22% at the Open Today
Shares of GAN Limited (NASDAQ: GAN) , which provides online betting services to other businesses and directly to consumers, fell sharply at the open on Wednesday, losing as much as 22% of their value in the first few minutes of trading. The big news was the company's fourth-quarter earnings update, which hit the markets after the close on Tuesday. Clearly, investors weren't pleased with the results.
From a top-line perspective, 2021 was a big year for GAN Limited. Revenues rose to $125 million from just $35 million in 2020. That growth was driven in part by an acquisition, and partly by new business from casino operators and a rising number of active accounts in its direct-to-consumer operations. That said, GAN Limited's bottom line was stuck in the red, with the company posting another year of losses. The management team has been emphasizing business growth, so that's not exactly shocking, but it says it is shifting gears in 2022, with a "focus on execution, cost controls and profitability." Not a bad call, given the glass-half-empty reception the Q4 earnings release garnered.
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Why GAN Limited Stock Fell 22% at the Open Today