Today, investors in Genius Sports (NYSE:GENI) and GENI stock are seeing some intense selling pressure.
Indeed, shares of GENI stock have lost nearly one-third of their value in a single day. That’s a massive hit for any individual stock, particularly over such a short period of time.
This move is a continuation of what has been some rather bearish momentum for Genius over the past month. Shares of GENI stock have now been cut by more than half as investors appear to look for other high-growth options to invest in today.
Of course, growth stocks have been hit hard in recent days. Concerns about the potential for faster-than-anticipated tapering following the re-nomination of Jerome Powell as Federal Reserve chairman have something to do with this. The entire Nasdaq exchange has been taking a breather (that’s a nice way of putting it) this week.
However, let’s dive into what investors are watching with this stock.
What Investors Should Know About the Selloff in GENI Stock
- Genius Sports is a tech-driven sports betting company based in the U.K.
- The company recently went public via a reverse special purpose acquisition company (SPAC) merger with dMY Technology Group.
- Like other high-flying sports betting companies, GENI stock surged earlier this year on growth-fueled enthusiasm.
- However, recent catalysts have done little to stop the bleeding as investors appear to be reallocating capital out of this sector.
- Yesterday, the company announced an expanded partnership with FanDuel to include official NFL data content.
- Additionally, today’s earnings report appears to not have been well-received, despite record numbers.
- In fact, Genius Sports beat revenue estimates by more than $6 million, bringing in $69.1 million on the top line.
- It appears sector-specific headwinds are the real driver for GENI stock today, in light of these catalysts.
- Accordingly, it’s been reported that Cathie Wood has upped her bet on GENI stock on this decline.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.