The PointsBet Holdings Ltd (ASX: PBH) share price is having a shocker of a day despite no company announcements.
At the time of writing, the sports betting company's shares are down 6.14% to $2.675.
Let's take a look at what's dragging down the former market darling.
Image source: Getty Images
PointsBet shares sink amid ASX tech sector sell-off
Investors are offloading the PointsBet share price despite the broader market ticking up a notch across the ASX.
However, the S&P/ASX All Technology (ASX: XTX) sector in which PointsBet falls under is shedding 0.29% to 2,033.5 points.
It appears the benchmark index for Australian technology-orientated companies is taking a breather after recording 4 consecutive sessions of gains.
In addition, PointsBet shares continue to be targeted by short-sellers, propping up consistently within the top part of the list.
Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow shares and sell the shares, and buy them back at a lower price for a profit.
Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.
As at 1 July, PointsBet had 6.20% of its shares being shorted by investors.
Given sizable short positions being taken up, it appears investors believe the company's shares will continue to fall.
PointsBet share price snapshot
Adding to its steep declines, the PointsBet share price has tumbled by almost 80% over the last 12 months.
These losses have come in 2022 as investor express their concerns about the company's extreme valuation and high marketing costs.
Year to date, PointsBet shares are down 62%.
Based on today's price, the company commands a market capitalisation of roughly $834.95 million.
