As Super Bowl nears, Stocktwits CEO highlights ‘huge overlap’ between sports activities betting and meme shares

As Americans focus their consideration on Super Bowl betting this 12 months, they’re anticipated to wager a document amount of cash on Sunday’s sport between the Kansas City Chiefs and the Philadelphia Eagles.

The American Gaming Association expects folks to spend roughly $16 billion betting on the sport, greater than double the estimate for final 12 months’s matchup between the Los Angeles Rams and the Cincinnati Bengals. The affiliation additionally estimates {that a} document 50.4 million American adults will guess on the Super Bowl, a 61% improve from final 12 months, fueled by the enlargement of authorized sports activities betting.

With that mind-boggling amount of cash more likely to be wagered on the Super Bowl, Rishi Khanna, CEO of Stocktwits, a social platform for traders and merchants, informed MarketWatch that there are many comparisons between sports activities betting and meme shares.

Related: At the Super Bowl, followers will have the ability to legally guess on the sport on their telephones — a primary

“I think there’s a huge overlap among the audiences,” Khanna stated. “Think about it. A trader and a sports bettor — it’s a game of risk and odds, it’s a game of numbers, it’s a game of math.”

Even as sports activities betting is on the rise, current years have additionally seen the emergence of so-called meme shares comparable to AMC Entertainment Holdings Inc.
GameStop Corp.
and Bed Bath & Beyond Inc.
which have been fueled by a social-media-driven buying and selling frenzy. AMC, which had been scrambling to lift money amid the financial fallout of the COVID-19 pandemic, was instantly reworked right into a meme-stock phenomenon. The firm used the steep rise in its share value to faucet into fairness and debt markets, elevating $917 million in January 2021. 

The Stocktwits platform grew 50% to greater than 6 million customers throughout the meme-stock mania two years in the past.

Related: Bed Bath & Beyond fairness providing ‘one of the most unusual financing situations we have witnessed,’ analyst says

Khanna stated that Stocktwits’ demographic information backs up that overlap of sports activities betting and meme shares. “I call sports and markets, specifically, two sides of the same coin,” he stated, including, “Outside of breaking news, these are the last two bastions where ‘live’ really matters.”

Meme shares have been within the highlight once more this week. Bed Bath & Beyond’s inventory rose 92% Monday in a transfer that swept up fellow meme shares AMC and GameStop earlier than pulling again. 

Last month, Bed Bath & Beyond introduced that it might must declare chapter, sending the corporate’s inventory sinking towards a 30-year low. That adopted a turbulent few years marked by strategic missteps, money burn, difficult underlying enterprise traits and the impression of the COVID-19 pandemic. Bed Bath & Beyond additionally lately disclosed that it was in default on loans that had been known as in.

Also learn: Bed Bath & Beyond making ‘last gasp’ to outlive earlier than submitting for chapter, says analyst, warning that the fairness will finally be worn out

“I was a little surprised by Monday,” Khanna informed MarketWatch. “But when you dig back into it, I do think that you have to take into account the covering of shorts — I think that played a big role in it.”

Surveying the final couple years of meme-stock exercise, the CEO described AMC as a “fascinating outlier,” noting the excessive degree of consideration the inventory receives. “That has been the number one most active ticker on our platform the last two years running,” he stated. “The AMC community is a very unique community — the community arguably saved AMC on a liquidity basis.”

Khanna additionally identified that AMC CEO Adam Aron has “leaned into” the meme-stock neighborhood. “It’s marketing showmanship,” he added.

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