GNOG Stock Could Benefit From the SPAC Deal
The SPAC deal could help GNOG stock, but it could also be the worst thing to happen. Sports betting was legalized in three states in November, making it legal in almost 50% of the U.S. Overall, the global online gambling market will grow to $92.9 billion in 2023, up from $59 billion in 2020. The SPAC could benefit GNOG stock, especially as more people get involved in sports betting.
GNOG stock is a good time to buy
Investors should consider GNOG stock because of its recent announcement to go public via SPAC. This transaction is valued at $6.6 billion, including GNOG’s stake. The company has been making a great showing in the gaming industry, with operating margins close to 25 percent. The company has developed several new games that are popular with its players, and it has won several awards, including Operator of the Year at the EGR North American Virtual Awards 2020 for four consecutive years.
GNOG recently presented its Q1 2021 results, including the launch of its services in Michigan. The company has been presenting its services in New Jersey and Michigan, with plans to launch in at least seven additional markets within the next 12 months. Investors can take advantage of the low price by purchasing shares of GNOG stock now. However, investors should be cautious in making investment decisions based on this report alone.
It has a buy signal from both short and long-term moving averages
GNOG stock has a buy signal from both short and long-term moving averages, which means there’s a bullish opportunity in the near-term. The short-term trend is bullish, while the long-term trend is bearish. GNOG has a weak growth score, so it’s probably best to buy it when the trend is bullish.
In addition to price action, a bearish indicator can be identified with the MACD Oscillator, which is the difference between short and long-term moving averages. A bullish signal is generated when the MACD Oscillator rises above zero. Conversely, a bearish signal can be created if it drops below zero. If this is the case, it may be worth looking for a new entry in the stock.
It is closer to the resistance than the support
The accumulated volume of Golden Nugget Online Gaming, Inc. (GNOG) is nearing its resistance at $6.01, which is higher than its recent support at $5.50. The risk-reward ratio for trading this stock in the short term looks attractive, but it could be a bad thing, too. Moreover, insiders have been positive, purchasing more shares than selling them.
A good place to start is with trendlines, which show where the support and resistance zones are. Trendlines help traders identify these areas. As a trader, it is important to understand how these levels influence price movement. The resistance zone forms when the price of an asset is expected to reverse higher. It is important to remember that support and resistance levels are temporary, and the price of a stock can change at any time.
It is down 35% in 2021
GNOG, the parent company of Golden Nugget Online Gaming, has announced that its SPAC deal will close at the end of 2020. GNOG is rapidly expanding into 10 states. In the first half of 2020, the company was operating only in New Jersey, with minimal revenue from sports betting. By the end of the year, its revenue was $91.1 million, an increase of 64% over the prior year. Additionally, its operating income was strong.
Despite these impressive numbers, the company has yet to attract much attention from analysts and investors. The company has failed to properly promote its business. In addition to its lack of promotion, competitors DraftKings and Skullz are now valued at $24 billion. However, GNOG has already been attracting the ire of bearish researchers. Therefore, it is too early to call the company’s stock a bust.
