Evolution Gaming - A curious case of incessant rain

Covid-19 briefly corralled a large amount of people into their homes. This set companies like Evolution Gaming on fire, but trees can’t grow to the sky forever. At a certain point in time there is usually a break where a growth algorithm implicit to the underlying market runs out of steam and you lose momentum. This has happened to an extent to Evolution Gaming. Before I left X (formerly Twitter) someone I briefly met over Redishred (which is unfortunately being acquired) made note they knew someone with a big short on, as if they were making a friendly warning.

Like they knew the report was going to be stinky or something. Yet when the last earnings happened there was a brief period of jubliation— followed by rainy days ever since.

There’s been a series of bad news like worker strikes and compliance issues and a million other things over a relatively short period of time. Yet the business marches forward and the sky is still shining bright. I want to provide a variant perspective on what may be happening.