Shares of dMY Technology Group (DMYD) jumped as much as 23.1% in trading Wednesday after the company announced a key partnership. Shares were still up 14.1% at 3:30 p.m. EDT.
Genius Sports Group, which dMY Technologies is merging with, announced that it has formed an exclusive long-term partnership with Beach Soccer Worldwide. The deal will allow Genius Sports Group to "drive the development of its sport, commercializing over 500 games per year with the regulated betting industry."
This is an expansion of deals Genius Sports Group already has to distribute data and broadcasts to sportsbooks around the world. And as a fast-growing game, beach soccer is seen as a big win for the company.
There are a lot of unknowns about the size and profitability of this business, but investors are willing to cheer even the smallest deals right now. They have been driving up shares of any company with exposure to sports betting or online gambling this year, and this is another potential growth stock to benefit. I'm not buying dMY Technologies' shares on this news, but I'll be watching how the company performs with deals like this under its belt in 2021.