888 Holdings (LON: 888) share price has been a big disappointment in The City. After peaking at 493.2p in September 2021, the stock has plunged to 70.60P. This crash has brought its total market cap to just £300 million, a fall from grace for a company that acquired William Hill in a £2 billion deal.
888 Holdings lost opportunities888 Holdings is a big sports betting and online gambling company that operates in several countries like the UK, Israel, Colombia, and Denmark among others. It operates several brands like 888Casino, 888Poker, and 888sport.
888 Holdings has not done well in the past few years. Along the way, the company has missed several opportunities. According to The Times, the firm rejected an acquisition deal from Playtech in July. That deal valued the company at over £700 million.
888 Holdings justified the move by arguing that it undervalued its company. Most recently, DraftKings walked away from a move as it worried that the UK could cancel the company’s licence. It is not clear the amount of money that DraftKings was prepared to spend.
These moves send memories of Entain, the parent company of firms like Ladbrokes, bwin, Coral, and PartyPoker. Entertain has a market cap of £5.09 billion, a few years after it rejected a buyout offer from MGM. It also rejected a $22 billion bid from DraftKings.
Watch here: https://www.youtube.com/embed/8ipzuhfBbsI?feature=oembedMeanwhile, its financial results have not been good either. The most recent results showed that the company’s revenue came in at £405 million, down by 10% YoY. Its UK and Ireland revenue slipped by 10% YoY while its international revenue fell by 2% and revenue by 19%.
It is unclear whether 888 Holdings will recover and retest its all-time high. It needs to jump by more than 606% from the current level. Such a jump will not be easy at a time when the company is facing strong competition, weak demand, and regulatory challenges.
888 Holdings share price forecast
The weekly chart shows how deep 888 stock has crashed hard in the past few months. It recently formed a double-top pattern, which is usually a bearish sign. It has now moved below the neckline at 75.40p. The stock has remained below the 50-week and 100-week Moving Averages.
Therefore, the outlook for the stock is bearish, with the next point to watch being at 50.05p, its lowest point on March 27th. This price is about 30% below the current level.
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