Today saw a whole group of special purpose acquisition company stocks climb higher. Most of them focus on electric vehicles or batteries. However, dMY Technologies (NYSE:DMYD) is an exception, focusing instead on a sports data and technology company. So what do you need to know about DMYD stock ahead of the Genius Sports SPAC merger?
To start, investors should know that dMY Technologies announced that it will bring Genius Sports public. Importantly, Genius Sports focuses on data sports and technology. But what does that mean? Essentially, Genius Sports assists major sports leagues and connects media, betting and athletics industries.
With that in mind, here are 12 things to know about DMYD stock and the Genius Sports SPAC merger:
- dMY Technologies first came public in August 2020.
- At the time, the blank-check company raised $240 million by offering 24 million units at $10 each.
- Importantly, Niccolo de Masi and Harry You lead the SPAC. Together, they have experience at Resideo Technologies (NYSE:REZI), Glu Mobile (NASDAQ:GLUU) and GTY Technology (NASDAQ:GTYH).
- Additionally, the pair is behind blank-check company, dMY Technology Group.
- This first SPAC plans to bring Rush Street Interactive to the public markets.
- Investors should note that dMY Technologies has similarly had a focus on consumer apps and app infrastructure.
- It makes sense then that DMYD stock is now behind the Genius Sports SPAC merger.
- Essentially, Genius Sports acquires data from sporting events around the world. Then, it supplies them to sports betting operators.
- It currently has partnerships with the NBA, NCAA, NASCAR, FIFA and other sports leagues.
- When the SPAC merger closes, Genius Sports will trade under the ticker GENI on the New York Stock Exchange.
- Importantly, the combined company will have a pro forma enterprise value of $1.5 billion.
- Additionally, it should have $150 million of growth capital.
Why DMYD Stock and the Genius Sports SPAC Merger Look Hot
So why is DMYD stock captivating investors — closing higher by nearly 19% on Wednesday?
Well, there has been a broad wave of interest in blank-check companies. But more importantly, Genius Sports offers investors an entry into the popular world of sports betting. As we have seen recently with Landcadia Holdings (NASDAQ:LCA) ahead of its merger with Golden Nugget, investors know that online gambling and sports betting is growing in popularity. This comes after a Supreme Court ruling, changes in state-level regulations and the novel coronavirus.
Without much to do outside, sports betting and online gambling grew in popularity. This is especially true as operators gain access to new markets.
There is also a lot to like about the role Genius Sports plays in this market. Essentially, it makes sports betting possible by providing all of the data. According to the company, it provides data on 240,000 events a year. It is also the official provider for at least 170,000 of those events. With a slew of long-term partnerships and potential for growth, the rise in DYMD stock should not be surprising.
One More Catalyst for DMYD Stock
One last thing. Today, investors got one more reason to like DMYD stock. Ahead of the Genius Sports SPAC merger, the company signed a long-term partnership with Beach Soccer Worldwide. As a result of this new partnership, Genius Sports can commercialize another 500 games per year.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.