The sports betting industry has seen an increase in iGaming sales share. Investors are looking for new methods to forecast stock performance, with an emphasis on analyzing promotions.
Role of Alternative Data in Stock Analysis
Traditional financial metrics often provide only a limited view of gambling company performance. These companies have a unique business model and few physical assets. Competitive pressure in customer acquisition raises costs, which impacts stock prices.
Football Campaign Intensity as an Indicator
Football represents a massive betting market, with operators engaging in significant promotional spending. Aggressive promotions during major sports events may indicate management's confidence in user acquisition returns. Such campaigns can signal a company's financial capabilities.
Quantifying Promotions for Stock Predictions
Promotion data can be analyzed by monitoring bonus offer values and advertising intensity. Analysts track the frequency and size of promotions to identify which companies are gaining or losing market share ahead of quarterly reports.
Analyzing alternative data, including marketing campaigns, can be a significant tool for predicting gambling stocks. However, there are limitations regarding the predictive power of such data.
