Entain shares on the rise - why is that?

Within a month, the Entain share price has risen by over 20 per cent. The current market capitalisation of the gaming group is now the equivalent of more than 7.2 billion euros. But why has the share price developed so positively?

Entain is one of the best-known and highest-grossing gaming groups in the world. The company owns popular gambling brands such as William Hill and bwin. In the recent past, we at GambleJoe have often reported positive news from Entain. For example, in an article published in October 2021, it was reported that Entain was able to increase its online turnover for the 23rd time in a row. The share price has also performed surprisingly well, at least in recent weeks.

Entain share price rises by over 20 % within one month

About a month ago, the price of an Entain share was almost exactly 9.00 euros. Since then, the share price has risen by more than 20% to around 11.00 euros (as at 8 January 2024). But why has the share price risen by around a fifth in just a few weeks?

One of the reasons is that Entain's previous CEO, Jette Nygaard-Andersen, resigned in mid-December. Since then, interim CEO Stella David has been at the helm of the multi-billion euro gaming group. Nygaard-Andersen had previously been at the helm between early 2021 and the end of 2023, succeeding Shay Segev. In January 2021, we reported that Segev had resigned after just a few months as CEO of Entain.

How will Entain's share price continue to develop?

It is true that Entain's share price has outperformed in recent weeks. But it is also true that the months and years before that were largely characterised by price falls. In October 2021, for example, the share price was still just under EUR 25.00, more than twice as high as at the beginning of January 2024.

Exactly one year ago, on 20 January 2023, the Entain share reached its 52-week high of exactly EUR 18.00. The 52-week low of EUR 8.90 was reached at the end of November 2023. Incidentally, in May last year we reported on a study which concluded that gambling fans are generally less likely to be found in the stock market.

Conclusion

Until a few weeks ago, Entain's share price knew only one direction - down. The short-term uptrend of more than 20% may have heralded a long-term trend reversal. It will therefore be interesting to see how Entain's shares perform in the coming weeks and months.

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