Genius Sports (GENI) Drops 7.8% as Kalshi Product Threatens Business

We recently published 11 Stocks Failing to Keep up With The Market. Genius Sports Limited (NYSE:GENI) is one of the top performers on Tuesday.

Genius Sports fell by 7.82 percent on Tuesday to finish at $12.38 apiece as investors sold off positions following Kalshi’s launch of a parlay product, just ahead of two football matchups.

Genius Sports Limited (NYSE:GENI) fell alongside its sports-betting counterparts after Kalshi launched its own “build your combo” feature, which allows users to pair multiple contracts with a game.

Genius Sports (GENI) Drops 7.8% as Kalshi Product Threatens Business

Further dampening sentiment was that 90 percent of Kalshi’s betting volume comes from sports contracts.

The product was unveiled ahead of the dual football matchups on Monday night, between the Dolphins and the Jets, and the Bengals and the Broncos.

Commenting on the drop, Texas Capital Securities analyst David Bain said that investors should look at the decline as a buying opportunity for online gaming-related stocks.

Amid all the buzz, Bain said that Genius Sports Limited (NYSE:GENI) is the clear winner across the sector as it benefits from market expansion of any kind.

While we acknowledge the risk and potential of GENI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GENI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.