The coronavirus crisis in the United States continues to build, but the pandemic has created opportunities to profit from the stock market.
Sharp rises and falls in the share price of companies affected positively or negatively by the virus has resulted in traders being able to make large profits – if they get their calls right.
Some stocks have grown in value by a huge amount in the last few weeks. Others have dropped at an alarming rate and may, therefore, be at the right price to buy as a result.
And most of this will be online
The impact of coronavirus on the gambling industry
Gambling stocks are among those to have nosedived with land-based casinos across the country have had to close their doors as a result of the coronavirus crisis.
US companies running these casinos can access government support announced by President Trump that has received a warm welcome from the American Gaming Association.
Hundreds of thousands of gambling jobs in Nevada alone are at risk with Las Vegas left as a ghost town, while many consumers have headed online to play casino games like blackjack.
Online casinos might be in a good place to capitalize on their land-based equivalents having to close and it is possible that online gambling may come to be seen as the new normal.
So, if this is the case, which stocks could be worth considering buying during the pandemic?
- The Stars Group
One company in a good position to take advantage of the online gambling boom is The Stars Group, a Canadian firm that owns various gaming brands PokerStars and Full Tilt Poker.
The share price of The Stars Group – which trades on the Nasdaq – has been steadily on the rise since the coronavirus crisis began, but there still appears to be plenty of room to grow.
The Stars Group stocks rose sharply towards the end of 2019 when news broke of a potential mega-merger with Flutter Entertainment, which would have created a global gambling giant.
Despite the pandemic, plans are continuing to push forward with the merger, so The Stars Group stocks are certainly worth keeping an eye on in the weeks and months to come.
The planned merger between the two companies has already been given the green light by the UK Competition & Markets Authority, clearing a major hurdle for the deal to go through.
- International Game Technology
Next up is International Game Technology (IGT), which has had a volatile share price in the past few weeks but could be poised to enjoy large rises in the near future.
IGT, which makes gambling technology and slot machines, is one of the biggest players in the space and looks likely to be one of the sector’s stocks to watch closely during the pandemic.
Trading on the New York Stock Exchange, the IGT share price recently enjoyed a weekly bump of more than 20 percent, though there was later a slight slip back in the stock’s value.
Argus has a ‘hold’ rating for stocks in IGT, which has a market capitalization of over $1 billion. With the global online gambling market already worth $46 billion and set to grow to over $94 billion by 2024 – according to recent Statista research – IGT could be set to take full advantage.
IGT is still launching new online casino games amid the coronavirus crisis too, with its PlayDigital brand recently revealing its new Cleopatra Gold slot.
Companies in the iGaming sphere appear to be uniquely placed to make the most of the coronavirus crisis and Playtech could be among the businesses that are set to profit.
Founded by Israeli entrepreneur Teddy Sagi, Playtech has grown into one of the world’s top online casino software providers. The firm is listed on the London Stock Exchange.
The firm has already reported that its poker and bingo businesses have seen a rise in activity from customers during the coronavirus crisis, which is good news for potential investors.
Unsurprisingly, sports betting offerings from Playtech have taken a hit because of the lockdown, while it also warned live casino operations could also be affected by the virus in the near future.
Playtech is therefore likely to face some ups and downs as the company gets to grips with the pandemic and this has been reflected in the company’s share price of late.
The firm’s stocks were on a downward slope from January to March, but since then they have been rebounding. Playtech is now a genuine investment option during the crisis as a result.