This Sports Betting Middleman Is Playing the Long Game

30‑Second Take

SBET has homed in on two things investors love when they show up together: sports betting growth and performance-driven digital marketing.

The stock is still down sharply over the last six months, but zoom in on the previous month, and the tone changes. Shares are stabilizing.

This matters because SharpLink sits in performance-driven sports betting marketing, exactly where spending tends to flow when sportsbooks get more disciplined rather than more aggressive. 

Put simply, the market has already punished the stock for past disappointment, while the business is lining up for a more execution-led phase.

When value and improving behavior start to overlap, that’s often when opportunity shows up before the crowd does.

Trade Setup

Timeframe: Short to medium term

Edge Type: Small-cap momentum meets fundamental inflection

SharpLink isn’t trading like a sleepy micro-cap anymore. The edge here comes from catching that transition phase.

Not early-stage speculation, but not a fully crowded trade either. If execution stays on track and visibility improves, this is the kind of name that can move in bursts, not inches.

Numbers at a Glance

Chart

1-month trading summary: After a brutal six-month drawdown, SBET’s recent price action feels like a change in character.

The stock is up around 2.8% over the last month, which doesn't sound dramatic at first glance. But context matters.

This move comes after a steep selloff, and instead of continuing to leak lower, shares have stabilized and are pushing higher. 

Volatility is still there, as you’d expect in a small-cap name, but the trend over the past few weeks is constructive rather than chaotic.

In short, the stock isn’t running yet, but it may have stopped falling.

Bull Case 

The house always gets the best odds: SharpLink Gaming lives in an unglamorous but highly profitable corner of the sports betting neighborhood.

Not the bets, not the hype, not the celebrity ads. The part where clicks turn into customers.

Sportsbooks have learned an expensive lesson. Chasing growth at any cost looks great in commercials and terrible on an income statement.

Now the mood has shifted. Every marketing dollar has to work harder, prove itself, and show real returns. 

This company wins when operators stop caring about noise and start caring about results. Performance-based marketing, measurable outcomes, and partners who get paid for delivery, not promises. 

When doubt fades, price follows: SharpLink doesn’t need a single blockbuster moment to work.

The real catalyst is much quieter and often more powerful: steady execution that forces the market to reassess its assumptions.

Improving partner performance, better monetization of traffic, or signs that operators are sticking with SBET’s model longer than expected could all move sentiment quickly.

Management has also been transparent about playing a longer game into 2026.

As that strategy starts to show up in clearer milestones, whether through revenue consistency, operating leverage, or tighter cost control, the narrative can shift from "still proving it" to "this is starting to work".

A bullish target: The high price target is $50.00. The low is $15.00.

When the selling finally runs out: After months of heavy downside, SBET’s chart is starting to behave differently. The stock has stopped making lower lows and has begun to stabilize.

From a technical standpoint, the most significant tailwind right now is simple: the pressure is easing. And in beaten-down small caps, that alone can be enough to change the trajectory.

Bear Case 

What if the bet on discipline doesn't pay off? As is so often the case for stocks on the cusp of changing the game, the most significant risk here isn't competition or regulation. It's timing.

SharpLink's model works best when sportsbooks are focused on efficiency, ROI, and long-term customer value.

If operators revert to splashy spending, short-term promotions, or in-house solutions, their value proposition could get pushed down the priority list.

There's also execution risk. Performance marketing sounds excellent on paper, but it only works if results are consistent and measurable across partners.

Any wobble in delivery, partner churn, or delays in scaling could test investor patience, especially after such a painful drawdown.

Last but not least, let’s not forget this is still a small-cap stock. Liquidity is thin, sentiment can swing quickly, and patience is required. 

Crowded space but few specialists: SharpLink operates in a busy ecosystem. On one side, you've got large media and affiliate platforms that drive massive traffic but don't consistently deliver high-quality, long-term customers.

They win on scale, not efficiency. On the other hand, sportsbooks themselves continue to build in-house marketing and data teams, trying to control the funnel end-to-end.

SharpLink sits in the middle as a specialist. Smaller, more focused, and built around performance rather than volume.

That can be a strength when operators care about ROI, but it also means the company doesn’t have the brand power or balance sheet of bigger players.

The competitive risk isn't going to be pushed out overnight.

It's being overlooked when budgets tighten, and decision-makers default to familiar names. SharpLink has to keep proving it earns its seat at the table.

When the tide becomes a headwind: Sports betting is still growing, but operators are dealing with tighter margins, higher customer-acquisition costs, and increased scrutiny of marketing spend.

If betting volumes soften due to a weaker consumer, marketing budgets are often among the first to be trimmed.

Even performance-driven spend can slow if operators shift into defensive mode. That creates short-term pressure for companies tied to acquisition and engagement.

The risk here is the opposite of overcrowding: It’s neglect. Low participation cuts both ways. When interest is thin, rallies can fade quickly, and breakouts can struggle to hold.

Without fresh buyers stepping in, progress in the fundamentals may take longer to show up in the share price.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (January 14, 2026)

Further Reading

• Q3 2025 Earnings 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha