Our Stock of the Week is Genius Sports Limited (GENI). GENI is a play on sport and sports betting. It sells products and services to the sports, sports betting, and sports media industries. It provides collection, integration, and distribution of live data for a variety of sports, including football and soccer. It offers streaming solutions and distribution of video footage of games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as a full suite of online and offline educational and consultancy services.
In late August, the company announced a partnership with Bally’s Interactive for official data and live streaming. The Premier League and NFL are Geni’s crown jewel clients.
The stock jumped on better-than-expected earnings of a loss of 2 cents and EBITDA. It is expecting revenue of $340 million in 2022, which should grow 25-30% in 2023 to around $430 to $440 million.
Technically the stock broke a long downtrend and moved higher on earnings. It has dropped back to key support at around $4, which should be a good area to consolidate in preparation for strength when market conditions improve.
Five Analysts have to buy ratings in the last three months, and the average target price is $7.60, which ranges from $6 at Citigroup to $10 at Credit Suisse.
As always, we would not look to chase strength to start the week but will aggressive trade into volatility as the chart develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in GENI To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
