Pointsbet Holdings Share Price Rebounds as Australian Quarterly GDP Clocks Fifth Consecutive Rise

Pointsbet Holdings share price ASX was among the best performers in Australia’s S&P/ASX 200 index on Wednesday, rebounding from Tuesday’s losses. The PBH stock jumped 9.96% on Wednesday to trade at A$1.435. The company’s shares have been under intense pressure for the past few weeks, dipping 4.97% in the past week and 5.59% in the year to date.

What Next?

Pointsbet Holdings Ltd is an Australian company that engages in the provision of racing and sports betting products and services directly to clients via its cloud-based wagering platform. The firm operates in other countries such as the United States, Canada, and Ireland.

The Australia-based company has been in the limelight for the past two trading sessions amid the release of its half-year earnings report. Pointsbet Holdings share price ASX plunged by more than 10% on Tuesday after the company posted disappointing results.

Pointsbet announced a 40% jump in turnover to $3.2 billion for the six months ending December 31st. This was boosted by a 14% increase in Australian turnover and a 66% climb in US turnover. The company reported a 2.6% decline in its gross win margin as the gross win grew by a modest 6% to $267 million.

Despite receiving a boost from the company’s lower market spend and growing iGaming operations, Pointsbet recorded a significant loss of $178.2 million.

Investors are still chewing on Australia’s GDP data for the December quarter of 2022. Data released by the Australian Bureau of Statistics (ABS) shows that Australia’s economy grew 0.5% in the December quarter, behind analysts’ estimates of 0.8%.

Pointsbet Holdings Share Price Outlook

The daily chart shows that the Pointsbet Holdings share price has been under pressure for the past few weeks. The stock has been moving slightly below the 25-day, 50-day, and 100-day moving averages. It is also moving below the 50-day and 100-day exponential moving averages. Its Relative Strength Index (RSI) is below the neutral zone.

Therefore, I expect the PBH stock price to continue falling as sellers target the important support level at $1.240. However, we cannot rule out a bullish breakout past the resistance level at $1.830.

PBH Price Chart

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