Here's why the PointsBet share price is jumping 10% today

This sports betting company's shares are jumping on Wednesday…

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The PointsBet Holdings Ltd (ASX: PBH) share price has been a strong performer on Wednesday.

In afternoon trade, the sports betting company's shares are up 10% to $2.06.

This compares favourably to the ASX 200 index, which is up a solid 1.7% this afternoon.

a group of people jump for joy and dance around celebrating good news.

Image source: Getty Images

Why is the PointsBet share price jumping?

The catalyst for the rise in the PointsBet share price on Wednesday has been a rebound in the tech sector following a strong night on the NASDAQ index.

This has seen the S&P/ASX All Technology index rise an impressive 4%, with many beaten down loss-making tech shares rising even strongly.

This includes Life360 Inc (ASX: 360), Megaport Ltd (ASX: MP1), and Zip Co Ltd (ASX: ZIP) shares, which are all by 5% or more today.

Can PointsBet keep rising?

The good news for investors is that one leading broker still sees significant upside potential for the PointsBet share price over the next 12 months.

According to a recent note out of Bell Potter, its analysts have a speculative buy rating and $5.25 price target on its shares. This implies staggering potential upside of over 150% for investors between now and this time next year.

This could make PointsBet one to consider if you have a higher than average tolerance for risk.

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc., MEGAPORT FPO, and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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