This Small‑Cap Sports‑Data Stock Has a Strong Buy Rating and 100%+ Upside Targets -- Without Ever Placing a Single Polymarket Bet

Sports betting has seen significant growth in recent years. Now, the newest iteration of online betting is emerging, with prediction markets like Kalshi opening up new avenues for individuals to trade on sporting events, and even political and economic decisions. It is another iteration of financial markets, though it currently operates in a legal gray area.

It is hard to predict exactly which platforms will win the most customers in prediction markets, sports betting, and other trading platforms that pop up in the years ahead. But there is one data provider that should win regardless of who comes out ahead: Genius Sports (NYSE: GENI).

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Wall Street has a price target well above its current price of $4.38. Here's why investors interested in sports betting and prediction markets may want to add Genius Sports stock to their portfolios today.

Data and media feeds for betting markets

Betting markets and sports leagues need rapid, real-time data from games to properly price assets for trading. Genius Sports is the key provider of this data through its partnerships with some of the world's largest sports leagues. By obtaining this on-field dating with its own sensors and imaging hardware, Genius can immediately sell it to willing buyers, such as sportsbooks.

The company is seeing steady growth in its betting technology segment, with revenue up 33% year over year in 2025 to $472 million, accounting for the majority of the company's sales last year. And this is before any revenue has been generated from Kalshi or Polymarket, as Genius management is waiting for full regulatory approval before dealing with these wild west prediction markets.

Besides betting technology, Genius also works with media technology partners, including digital advertising companies, to leverage its sports data. This segment is much smaller than betting technology, but it grew 37% in 2025 to $144 million in revenue. The company also recently acquired Legends, a business that operates a network of affiliate marketers in the sports betting space, for $1.2 billion. This is hitting the same industry from two different angles, allowing Genius to not only make money selling data to sportsbooks but also take a fee for acquiring customers for them.

Is Genius Sports stock cheap?

The average Wall Street price target for Genius is $12.76, which is 200% above today's price.

After digesting the Legends acquisition, Genius believes the combined business will do $1.1 billion in revenue this year, with $320 million-$330 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).

The affiliate market is facing some headwinds due to the rise of artificial intelligence (AI), and there is always uncertainty in the fast-moving world of betting markets, but Genius Sports seems to have a lock on providing raw data from sporting events, a service that its customers will want for years to come. With the stock in the gutter, Genius Sports looks like a solid buy right now.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Genius Sports. The Motley Fool has a disclosure policy.