Why Gan Limited's Stock Is Down Almost 10% This Week
Shares of online gambling services provider Gan Limited (NASDAQ: GAN) dropped 9.4% this week through Thursday's close. The cause? An earnings miss -- but a deeper look suggests that the sell-off might have been overdone.
Gan reported its second-quarter results after the U.S. markets closed on Monday, and the bottom line wasn't quite what Wall Street had expected. While Gan's second-quarter revenue of $34.6 million was slightly ahead of estimates, its net loss -- $2.7 million, or $0.07 per share -- was considerably wider than the average $0.01 per-share loss that analysts polled by Thomson Reuters were expecting.
During the earnings call, CEO Dermot Smurfit emphasized that the company is investing in a longer-term growth plan.
Source Fool.com
