Gambling.com stock's recent selloff doesn’t seem to make sense. Here’s why

Besides AI, one of the fastest-growing industries is online sports betting (OSB) and iGaming (online casinos). DraftKings ($DKNG), a leading publicly traded company in this space, delivered a stellar return of nearly 200% in 2023, officially becoming one of the year's best-performing stocks.

Another rapidly growing name in this industry is Gambling.com ($GAMB). GAMB is not an OSB company but an online gambling news, reviews & guides platform. Essentially, it’s a media company for the online gambling industry.

GAMB is a high-growth and asset-light business that generates strong cash flows. But despite its strong fundamental performance, $GAMB is currently trading near 52-week lows. The stock plunged in mid-November after the company reported Q3 earnings results that exceeded estimates across the board.

The selloff doesn’t make sense as GAMB continues to grow nicely and operates in a market with significant growth prospects. Its asset-light business model allows it to generate consistently high cash flows, and its leading market position creates a competitive advantage that can help it sustain its high growth rates. Here’s what you need to know.

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