Why NeoGames Stock Soared on Monday
NeoGames (NASDAQ: NGMS) stock soared above the market's returns on Monday, rising more than 110% compared to a flat S&P 500. That boost put the digital lottery, gaming, and sports betting platform up roughly 129% so far in 2023, compared to a 7% gain in the wider market. Yet, shares are still far off the highs they set during the pandemic.
Monday's rally was powered by news that NeoGames struck a deal to be acquired at $29.50 per share.
Over the weekend, NeoGames' board of directors announced that they reached an agreement with Aristocrat Leisure, valuing the company at roughly $1.2 billion, or an over 100% premium. Most shareholders will be thrilled at that quick return, given that NeoGames reported net losses in the past quarter and for the full 2022 fiscal year. Yet its revenue base is expanding quickly, and NeoGames reached much higher valuations at times during the pandemic.
Source Fool.com
