We recently compiled a list of the 12 Best Growth Stocks Under $25 to Buy Now. In this article, we are going to take a look at where Genius Sports Limited (NYSE:GENI) stands against the other growth stocks.
AI is the Most Defining Theme of 2025, Says Expert
Most experts agree that the AI wave is not over yet. On January 8, Wendy Sheehan Donnell, Editor-in-Chief at PCMag, joined Yahoo Finance from CES 2025 to share her take on trending innovations and the increasing role of artificial intelligence in revolutionizing industries.
Donnell unveiled some of the groundbreaking innovations spearheaded by companies from across the globe and emphasized that “AI is the prevailing theme” across all these new products and services. She highlighted the incidence of AI-powered home devices such as smart microwaves and fridges to help people live smarter and tech-immersed lives. She also shed light on the growing role of AI in healthcare and biotechnology, which will contribute to the well-being of people.
A Glance at the Tech Sector in 2025
The market close on Tuesday reiterated a similar pattern where tech stocks continued to shine, however, some analysts expect the market to broaden over the course of 2025. On January 7, Joe Mazzola, head trading and derivatives strategist at Charles Schwab, joined Yahoo Finance, to discuss his market thesis for the tech sector especially.
Mazzola suggested that the market breadth was of importance in the earnings season, and pointed towards the strengthening of the US dollar and how it may impact the earnings of tech names. He added that the market needs the other “493 names” in the S&P 500 to catch up. Mazolla also emphasized that while 2025 can be a win for Big Tech like 2024, a broadening would help the overall market immensely in terms of earnings.
He added that the financials sector would supposedly catalyze the broadening of the market, because of favorable economic and market conditions. He then discussed the tailwinds for financials and how the same factors serve as headwinds to Big Tech, emphasizing that the bullishness on tech has been slower than it was at the end of 2024.
Our Methodology
We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion and that gained more than 50% over the past 2 quarters. We then examined the hedge fund sentiment surrounding 25 stocks and picked the 12 stocks that were the most widely held by hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Genius Sports Limited (NYSE:GENI)
Number of Hedge Fund Holders: 27
Share Price as of January 8, 2024: $8.8
Genius Sports Limited (NYSE:GENI) ranks seventh on our list of the best growth stocks to buy now under $25. The sports-based data and technology company provides several key services such as data management, video streaming, and integrity services to sports leagues. GENI was founded in 2001 and is committed to making sports smarter for fans and teams. Companies and organizations like the NFL, Coca-Cola, and the Premier League use the services of GENI to place the right ads at the right time, drive fan engagement, and increase efficiency.
It is no surprise that Genius Sports Limited (NYSE:GENI) is using artificial intelligence to enhance its offerings. The company is able to transform millions of data points into insights in readable formats such as videos, visuals, and data charts. Moreover, its data and video analysis software allows coaches with powerful insights to master crucial decision-making. In addition to that, the Genius monitoring system is also able to detect any suspicious betting activity using its predictive algorithms.
27 hedge funds were bullish on the stock at the close of Q3 2024, and that is primarily because of GENI’s growing popularity in the sports industry which is also expected to grow immensely over time due to solid partnerships with big names. In addition to its strong position, the company is also becoming a data and technology powerhouse, setting it apart from its competitors.
Choice Equities Capital Management stated the following regarding Genius Sports Limited (NYSE:GENI) in its Q3 2024 investor letter:
“CZR and Genius Sports Limited (NYSE:GENI) – Both Caesars Entertainment, Inc. and Genius Sports Limited operate in and around the entertainment, casino and gaming space. Caesars is a bit more well-known and discussed in brief below. Genius is not as well-known but possesses a bright future as a fast-growing company that has become a critical cog in the sports betting value chain. The company has exclusive data rights deals with many leagues including the English Premier League and the NFL (which owns an equity stake in the company) which afford the company the right to collect, synthesize and share pre-game and in-game data with their casino and sportsbook partners to generate betting lines. A more in-depth memo has been attached for existing investors.”
Overall GENI ranks 7th on our list of the best growth stocks under $25 to buy now. While we acknowledge the potential of GENI as an investment, our conviction lies in the belief that certain 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
