Why Is Bally's (BALY) Stock Soaring Today

What Happened:

Shares of gaming, betting and entertainment company Bally's Corporation (NYSE:BALY) jumped 27.1% in the morning session after the company announced that hedge fund Standard General proposed acquiring all outstanding shares it doesn't already own for $15 each, representing a 41% premium to the closing price on March 8, 2024. Standard General is Bally's largest stockholder, with a 23% ownership. If it succeeds, Standard General plans to allow stockholders to roll over their shares into the equity of the post-closing company. The proposed transaction is subject to approval by Bally's Board of Directors.

Is now the time to buy Bally's? Access our full analysis report here, it's free.

What is the market telling us:

Bally's's shares are very volatile and over the last year have had 38 moves greater than 5%. But moves this big are very rare even for Bally's and that is indicating to us that this news had a significant impact on the market's perception of the business.

Bally's is down 0.8% since the beginning of the year, and at $13.34 per share it is trading 31.7% below its 52-week high of $19.52 from March 2023. Investors who bought $1,000 worth of Bally's's shares at the IPO in March 2019 would now be looking at an investment worth $445.24.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.