What $GENI Stock Plummeting Means For Sports Betting

11/24/21 01:37PM EST


In this clip from The Call @ Hedgeye, Gaming, Lodging and Leisure analysts Todd Jordan flags Genius Sports Limited (GENI) and how their earnings report impacts the sports betting industry for names like DraftKings, Inc. (DKNG) and Wynn Resorts, Ltd. (WYNN).

“Part of the Genius (GENI) problem is that revenue is okay, but their profitability took away their positive EBITA guidance and brought it down to basically not earning any money,” notes Jordan.

“When you have your valuation space on multiples of revenue going out five years, what is the right multiple? Is it 10, 8, 5, 7, or 3? You can obviously get to a lot more downside if you are just looking at price alone, so we try to focus more on catalyst. Cheaper stocks get cheaper and expensive stocks get more expensive.”

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