Why DraftKings Stocks Could Be a Hit During the NFL Playoffs

Investment guru Jim Cramer has some exciting news for people interested in the sports betting platform, DraftKings. As the NFL playoffs kick off, Cramer thinks now might be a great time to buy DraftKings stock. The stock has seen a recent dip, but Cramer believes there's more to this company than meets the eye. Looking back at previous years, DraftKings stock has shown a pattern of rallying during the NFL playoffs, all the way up to the Super Bowl. Even though the stock dropped last year, Cramer blames this on a tough market, especially for growth stocks, as the Federal Reserve raised interest rates. Cramer is optimistic about DraftKings for more reasons than just its stock performance. He likes the company's core business, which includes expanding into new markets like Missouri, where sports betting is becoming legal. The company's CEO, Jason Robins, believes the industry is still in its early stages in the U. S. , hinting at significant growth potential. One of the company's smart moves is encouraging customers to use parlays, which are more profitable for sportsbooks. However, DraftKings has faced some bad luck recently. Gamblers have been on a winning streak, with favorites winning more than usual over the past year. This unusual luck has affected DraftKings' profits. But don't worry, says Cramer. Once this unusual streak ends, DraftKings should see its profits accelerate. He also warns that the stock could face more losses if it follows in the footsteps of its main competitor, Flutter, which reported that the current NFL season has been extremely favorable for customers. Until DraftKings gives a similar update, investors should be cautious. DraftKings did not respond immediately to a request for comment.

Why DraftKings Stocks Could Be a Hit During the NFL Playoffs

Continue Reading...

Actions