Raketech (RAKE) is an affiliate and content marketing company that has seen notable increases in its annual earnings and share price. With strong fundamentals and analysts estimating that it’s trading at more than 50% below its fair value, should you buy Raketech stock?
This guide to Raketech stock trading unpacks the company history, stock quotes, comparative analysis, share price forecasts, and news. Our team also explain how to buy Raketech stock, including the best brokers and trading apps.
Top 3 Brokers For Trading Raketech Stock
- Good value compared to peers
- Double-digit earnings growth forecast per year
- Low trading volume with potential for price action
- Strong fundamentals with long-term investment prospects
- Recent dilution of shareholders
- Limited dividend history
- Small market cap
Raketech Group Holding PLC is a digital marketing company that specializes in online betting, or iGaming, typically focusing on sports and casinos.
From its Malta-based headquarters, the company operates a range of websites that offer guides, comparisons and reviews of casinos and sports betting platforms. The firm is active in multiple regions, including Scandinavia, Canada, Japan, and the US.
Popular websites in its portfolio include CasinoGuide.se, TurtleBet.com, Casinoer.com, CasinoBonusar.nu, Norgecasino.com, CasinoFever.ca, BetXpert.com, and Cryptimi.com.
It is a relatively small company compared to some of its larger rivals, with 113 employees at the time of writing and a market cap of 808.6 million SEK (around 76 million USD).
Raketech has been listed on the Nasdaq OMX Nordic since June 2018. Its ticker symbol is RAKE and its stock price is traded in SEK (Swedish Krone).
Raketech was founded in 2010 as an affiliate marketing firm in online poker. Since then, it has expanded by acquiring websites such as CasinoGuide.se in 2015 and TVMarchen.nu in 2017.
Raketech has won several awards since its launch – a positive indicator of a well-run firm. These include the EGR Affiliate of the Year in 2016 and the EGR Nordics Affiliate of the Year in 2017.
The current CEO, Oskar Mühlbach, was appointed in 2019 and the following year the company acquired the firm American Gambler, allowing Raketech Inc to move into the growing US online gambling market.
The historical high for Raketech stock was 29.92 SEK, reached in June 2018. In March 2020, RAKE sank to its historical low of 5.20 SEK. However, it quickly rebounded and the stock price has not dropped below 15 SEK since February 2021.
Raketech Price Chart
Share Price Influences
Take the following factors into account if you plan to start Raketech stock trading:
Raketech needs to continue its current growth trend if the stock price is to carry on rising. The company has good fundamentals with a strong track record of increasing earnings over the past few years and a low debt-to-equity ratio, suggesting that the company is healthy in a financial sense.
Between 2017 and 2023, annual revenues grew from €10.4 million to over €52.6 million, representing an increase of more than 500%. A lot of this growth has come in the past three years – annual revenues have increased by €28.6 million since the beginning of 2020. This may continue in the future, with the company’s revenues forecast to increase by 10.5% on average over the next few years.
However, a drop in earnings could lead to profit margins shrinking and a decline in the stock’s value, as observed between March 2019 and March 2020 when the company’s turnover decreased by €3.1 million and the stock price dropped from around 24 SEK to below 7 SEK.
The iGaming marketing industry is competitive and Raketech is not performing as well as some peers. While the company is forecast to grow over the next few years and arguably represents good value, it could lose out compared with its competitors, which see better price-to-earnings ratios.
Raketech has a price-to-earnings ratio of around 8.9x, which is lower than its peers at an average of around 16.2x. It is also considerably lower than other firms in the European hospitality industry, which are around 19.6x.
Among its competitors are Kambi Group, Betsson, Kindrid Group, HomeMaid, and Future Gaming Group International.
The rollback of restrictions on online betting in many US states since 2018 has opened up new market opportunities, leading iGaming marketing companies such as Raketech to focus on these areas.
However, this is only limited to certain states. Online betting is legal in states such as New York, Florida and Nevada but still prohibited in California, Texas and other states.
Similar regulatory changes may impact the iGaming marketing industry. If more US states legalize online sports betting, these companies will have new avenues for growth. Conversely, if restrictions tighten, Raketech and its peers may lose out.
One example of a potential regulatory squeeze is in the UK, where there has been a push for the government to release details on a gambling white paper which is thought to outline increased regulation of online sports betting with greater protections for customers.
If these changes increase the barrier to entry, it could lead to fewer new customers signing up to gaming sites, diminishing the UK market for iGaming companies.
Customer Financial Health
The iGaming industry is reliant on customers spending money on online betting and gambling. A poor economic outlook may hit customers in the wallet and have a knock-on effect on leisure sectors like iGaming.
Take into account factors such as interest rates and price inflation in countries where iGaming is popular. Higher inflation and other economic issues tend to leave people with less disposable income to spend on gambling, potentially stunting the growth of companies in the iGaming industry.
With that said, analysts have highlighted that some online gambling and sports betting firms have proven resilient in the face of economic pressures.
Pros Of Raketech Stock Trading
- Growing company with strong fundamentals
- Low trading activity opens up price action opportunities
- Good value with a price-to-earnings ratio of 8.9x vs the industry average of 16.2x
- Investment banking analysts believe fair value is 50%+ above recent levels
- 5.35% dividend puts RAKE in the top 25% of dividend-paying companies in Sweden
Cons Of Raketech Stock Trading
- Short dividend history makes it difficult to gauge payment stability and growth rate
- Traded on Nasdaq Nordic, which is not widely available vs other exchanges
- Small-cap stocks can be riskier and more susceptible to market changes
How To Trade Raketech Stock
Choose A Vehicle
Investors can buy and trade Raketech stock in several ways. The most popular trading vehicles include:
- Direct share trading – The most obvious way to invest in Raketech is by directly buying shares in the company. Retail investors can do this through an online broker, paying a small commission. Buying shares will typically give the investor ownership rights and dividend payments.
- Contracts for difference – CFDs are derivatives that allow traders to go long or short on Raketech without actually buying the underlying stock – traders simply speculate on the price. CFDs can also be traded with leverage, meaning you can increase your purchasing power and potential profits (or losses). A CFD on RAKE shares with 1:5 leverage, for example, would increase the trader’s position by 5 times.
Choose A Broker
Next, choose between the best Raketech brokers. Key areas to compare include:
- Fees – What are the fees to buy, sell and trade RAKE stock? At Saxo Bank, for instance, charges start at 0.1% with the Classic account (minimum 60 SEK).
- Payment methods – The top Raketech stockbrokers offer fee-free deposits via popular payment methods like wire transfers, bank cards, and e-wallets like PayPal. Also check what the minimum deposit requirements are. IG, for example, accepts new traders with a $250 deposit.
- Platform & app – Leading brokers that offer Raketech stock trading provide a reliable and stable platform, such as MetaTrader 4 (MT4). The beginner-friendly terminal is home to instant and pending orders, customizable charts, and a suite of technical indicators and analysis tools.
- Regulation – Check that the brokerage is regulated by a trusted financial authority, such as the UK Financial Conduct Authority (FCA), Cyprus Securities & Exchange Commission (CySEC), or US Securities and Exchange Commission (SEC). This should mean various customer safeguarding measures are in place, including negative balance protection, limits on leverage, and access to investor compensation schemes.
- Extra resources – The best Raketech stock trading brokers will offer extra features like stock screeners, analysis from market experts, economic calendars, and copy trading.
Should You Invest In Raketech Stock?
Raketech is an attractive stock with great fundamentals and a lot of potential upside; the company has grown rapidly in recent years and this is forecast to continue. Many analysts also believe that the company is undervalued. In addition, low trading volumes could give rise to price action.
On the downside, its relatively low market cap can make it sensitive to broader industry and geopolitical changes. It also has a short dividend track record and has seen a notable dilution of shareholders recently.
Overall though, Raketech is one to watch, offering both short-and long-term trading opportunities for savvy investors. See our list of the best brokers for Raketech stock trading to get started.
Note, the information on this page should not be considered financial advice. Consider your goals, risk tolerance and trading style before making investment decisions.
How Can I Buy Raketech Stock?
To buy Raketech stock you will need to open a live trading account with an online broker. The best brokers with Raketech stock trading will offer direct share dealing or derivatives like CFDs. Also check for low fees, regulatory oversight, and a stable trading platform or investing app.
What Does Raketech Do?
Raketech is an iGaming marketing and affiliate company that primarily offers guides, comparison services, communities and reviews of online casinos and sports betting firms. The firm also has a presence in the cryptocurrency industry.
Raketech is active in multiple regions, including Scandinavia, Canada, Japan, and the US, to name a few.
Is Raketech Stock A Good Or Bad Stock To Buy?
Raketech has seen double-digit earnings growth in recent years with analysts forecasting the same in the coming years. The company is also undervalued compared to industry peers and pays a dividend. Its smaller market cap and relatively short dividend history are worth taking into account, but many feel that RAKE has good long-term prospects.
Which Brokers Offer Raketech Stock Trading?
There are several top-rated brokers for buying, selling and trading Raketech stock. Among the best platforms are Saxo Bank, Interactive Brokers, and IG. These firms are regulated by trusted financial agencies, offer low stock trading fees, and have a user-friendly trading platform and app.
What Is The Raketech Stock Price High & Low?
Raketech stock reached a peak value of 29.92 SEK in June 2018, soon after the company began trading on the Nasdaq Nordic. After fluctuating between 19 SEK and 27 SEK over the following 12 months, the stock began to steadily decline down to 5.20 SEK by March 2020 before increasing again. Between 2022 and March 2023, the stock fluctuated between 16 SEK and 27 SEK.