The shares of SoFi Technologies Inc (NASDAQ:SOFI) are up 3.6% at $6.05 before the opening bell, following an upgrade from Bank of America to “buy” from “neutral.” Bank of America also lifted its price target by $1 to $9, citing the end of the student loan moratorium, as well as the company’s “NFL-aligned marketing investments,” the latter of which the analysts expects will spark user growth and customer engagement.
SOFI has suffered a dramatic selloff this year, with pressure at the 50-day moving average keeping a tight lid on any breakout attempts. Though the stock did manage to break through this trendline early last month thanks to an impressive post earnings pop, the shares quickly sunk back below this level by the end of August. Year-to-date, SOFI has lost 63%.
Should other covering members of the brokerage bunch start to follow Bank of America’s lead, it could give SOFI a much-needed boost. Of the 12 in coverage, five considered the stock a “hold” coming into today. Meanwhile, short sellers are already hitting the exits, down 20.9% in the last two reporting periods. However, the 103.23 million shares sold short make up a hefty 14.1% of the stock’s available float, leaving plenty of room for a short squeeze.
Since 2018, one of the most compelling sectors for growth-oriented investors is the sports betting sector. That was the year the U.S. Supreme Court allowed states to legalize sports betting. Since then 30 states have taken that step including New York and New Jersey which are two key markets. In fact, the state of New York broke a record when it legalized online sports betting in January 2022.
This makes it a good time to consider investing in sports betting stocks. Many of these stocks are trading at significant discounts as part of the broad market sell-off. The reason for this is competition. There are a nearly endless number of online sportsbooks competing for consumer dollars.
And it would appear there’s enough revenue to go around. According to Data Bridge Market Research, the global sports betting market is expected to grow at a compound annual growth rate of 10.26% between now and 2029.
With that said, sports betting stocks are definitely risk-on assets. And the payoff may be years away. But if you have time and have a tolerance for risk, here are seven sports betting stocks to consider for solid upside gains.
View the “7 Sports Betting Stocks to Buy for Their Long-Term Possibilities”.
Source: marketbeat.com
