Date: October 14, 2024, 04:05h.
Last updated on: October 14, 2024, 04:05h.
Genius Sports (NYSE: GENI) has signed an agreement with the Los Angeles Rams to provide Next Gen Stats (NGS) supported highlights during the team’s home games at SoFi Stadium.
The highlights will be displayed on SoFi’s Infinity Screen, one of the largest in-stadium screens in the US.
These highlights, supported by GeniusIQ, a next-generation data and AI platform from Genius Sports, will feature important NGS insights like player locators and speeds, quarterback throw time, and a complete minimap,” a statement from the sports betting data provider said.
Genius serves as the official data provider for the NFL.
Significance of the Rams Deal for Genius
Genius saw a 3% increase in shares today with trading volume exceeding the daily average, with the Rams deal potentially contributing to this surge.
Typically, agreements between betting companies and teams do not have a significant impact on investors, but the Genius/Rams partnership could be different as it showcases the company’s successful diversification beyond sports betting and utilization of AI technology.
Earlier, Genius partnered with social media platform X (formerly Twitter) to use “Trend Genius” for improved ad targeting. Trend Genius uses AI to understand user posts on X and show relevant ads. At SoFi Stadium, Genius will use technology to simplify football concepts for fans of all levels of knowledge.
“GeniusIQ utilizes advanced machine learning and AI to interpret vast amounts of NGS data into a meaningful football understanding. This enables real-time insights and brand engagements, creating meaningful connections with fans during crucial on-field moments,” the statement explained.
Analysts’ Outlook on Genius Sports
With a 26.21% increase year-to-date, Genius stands out as one of the top-performing small-cap gaming stocks in 2024. Analysts believe there is further upside potential for the stock. B. Riley analyst David Bain reaffirmed a “buy” rating on Genius in a recent client report.
“We see momentum in the betting division with potential for strong earnings growth in the near term,” the analyst stated. “GENI also presents a significant growth opportunity in its media division. Following our analysis, we believe GENI’s media division’s EBITDA growth potential is underestimated and that media could drive significant upside in the future.”
Bain highlighted the potential breakthrough of the company’s FANHub offering in the media division. His $10 price target suggests a 27.3% upside from the current closing price.