Has Scientific Games Stock Reached The End Of Its Bull Run?

scientific games stock bull run
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Has Scientific Games Stock Reached The End Of Its Bull Run?

The shares of Scientific Games (NASDAQ: SGMS) have been surging ahead in the past two months after the company reported strong growth of its Lottery, SciPlay, and Digital segments in the first quarter. With the reopening of conventional casinos and rising air travel demand in Q1, Scientific Games' SciPlay and Digital segments observed 37%(y-o-y) growth in average revenue per user and 71%(y-o-y) growth in online wagering, respectively. Thus, investor optimism has led to a monumental rise in stock price since early May. On the contrary, the shares of prominent online casino companies Draft Kings and Penn National Gaming have been trending downward due to stiff competition in the sports betting industry. Notably, SGMS' SciPlay and Digital segments also face tough competition from Zynga and International Game Technology, respectively. Moreover, the company's Gaming segment, which contributes almost 50% of SGMS' revenues and earnings, is likely to observe a demand crunch for a couple of years. According to the Trefis Machine Learning Engine, which identifies trends in a company's historical stock price data, Scientific Games stock will likely gain 3. 2% over the next one month (twenty-one trading days) considering the -0. 2% drop in the past week (five trading days). But

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