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.”
(This clip is a small taste of what our subscribers get each day on The Call @ Hedgeye. In a nutshell, The Call is our morning research call hosted by Hedgeye CEO Keith McCullough with our 40+ analyst research team. It helps small and large investors alike make better decisions via unique and investable stock/sector updates Click here to learn more.)
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