Why Scientific Games Stock Jumped 12% at the Open on May 26
Shares of Scientific Games (NASDAQ: SGMS) rocketed 12% higher at the open of trading on May 26. The shares gave back a good portion of that swift advance, however, hovering around 5% to the plus side at 1:30 p.m. EDT. There was nothing specific from the company, but the broader news in the gaming space seems to suggest there's material positive momentum taking shape.
Scientific Games provides hardware and services to the gambling industry. Its operations span from government-run lotteries to online gaming and the machines that live in casinos. That last category is a big one, representing around 45% of revenues in the first quarter. However, as the company's first-quarter 2020 earnings release explained, "The Company's Gaming revenue was negatively impacted by the COVID-19 disruptions that resulted in temporary closures of casino operations in jurisdictions globally." That's kind of an understatement, since sales in the segment fell a painful 25% year over year. Note that many casinos were actually open for a good portion of the quarter, too.
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Source Fool.com
