Why did the Pointsbet share price leap 7% on Thursday?

Pointsbet shares were on fire today. What's going on?

| More on:
a group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottls in front of them cheering on one of their group as he looks excitedly at his phone as though he's just had some success on an online gambling app.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been a positive day for ASX shares on Thursday. At the close of trading, the S&P/ASX 200 Index (ASX: XJO) was up a healthy 0.44% to more than 6,650 points. But speaking of points, it's been an even better day for the Pointsbet Holdings Ltd (ASX: PBH) share price.

Pointsbet shares closed 7.06% higher at $2.73 a share.

So what sparked such an enthusiastic reaction from investors over the sports betting company's shares today?

Why did Pointsbet shares rocket 7% today?

Well, it's not clear, unfortunately. There has been no major news or announcements out of the company for a while now.

However, we saw a clear trend on the ASX boards today that could explain the Pointsbet share price's impressive performance. ASX tech shares were one of the best performing sectors on the ASX 200 today. The S&P/ASX All Technology Index (ASX: XTX) put on an eye-catching 2.15% today, with many ASX tech shares doing even better than that.

EML Payments Ltd (ASX: EML) shares rose 12.3% today, while Novonix Ltd (ASX: NVX) was up 3.4%, the Computershare Limited (ASX: CPU) share price lifted 2.7% and WiseTech Global Ltd (ASX: WTC) shares climbed 2.47%.

Pointsbet is also one of the ASX's most shorted shares at the moment. This means the company's share price is vulnerable to a short squeeze, which could also help explain its healthy outperformance today.

Even so, today's move isn't nearly enough to make up for what has been an especially tough year for the Pointsbet share price. The company remains down more than 60% year to date in 2022, as well as down more than 75% over the past 12 months.

At the current Pintsbet share price, this ASX tech share has a market capitalisation of $830 million.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments, Pointsbet Holdings Ltd, and WiseTech Global. The Motley Fool Australia has positions in and has recommended EML Payments and WiseTech Global. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Technology Shares

Why are investors fighting to buy this speculative ASX stock today?

What is getting investors excited today? Let's find out.

Read more »

Two men laughing while bouncing on bouncy balls
Technology Shares

Top broker says ASX 300 tech stock has 18% upside after sell-off

ASX 300 investors overreacted in punishing the high flying tech stock yesterday, this top broker says.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

These ASX 200 tech stocks just crashed! Is this a no-brainer buying opportunity?

Bell Potter thinks these tech stocks could be great options following declines this week.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Technology Shares

Down 45% in 8 months, why this ASX 200 tech stock 'now looks attractive'

Down 45% since March, this investing expert sees good value in the ASX 200 tech stock.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Why is this ASX tech stock crashing 27% today?

Why are investors hitting the sell button? Let's find out.

Read more »

Man looks confused as he works at his laptop. watching the Magnis share price movements
Technology Shares

WiseTech share price in spotlight again as class action mounts

The headlines continue rolling in.

Read more »

Unsure man analysing data on laptop.
Earnings Results

ASX 200 tech stock sees red as investors punish Q3 results

Investors continue digesting the numbers.

Read more »