Welcome to Extreme Investor Network, where we provide you with valuable insights and unique information on investing opportunities. Today, we’re diving into the world of sports gambling stocks and how the start of the National Football League season can impact this sector.
While sports betting has become increasingly popular in the U.S., it doesn’t always translate to booming stock prices. DraftKings, a key player in the online betting industry, has seen a 2.8% decrease year to date. However, the NFL’s popularity can still have a positive effect on stocks like DraftKings during the season.
According to Benchmark analyst Mike Hickey, the NFL is a major driver of U.S. sports betting handle and revenue. In fact, DraftKings stock has historically performed well during the NFL season, with an average return of 29% and positive returns in 4 out of the last 5 seasons.
Wall Street analysts are optimistic about the future of sports betting stocks, with buy ratings for market leaders like DraftKings and FanDuel parent Flutter. The industry is experiencing healthy growth, and analysts like BTIG’s Clark Lampen believe there is potential for rapid total addressable market expansion.
While there have been struggles for some companies in the sports betting sector, there are signs of success as well. Flutter’s decision to change its stock listing from London to New York has contributed to an 18% increase in its stock price year to date. Rush Street Interactive, the parent company of BetRivers, has seen its shares double this year, showcasing the potential for growth in this space.
However, there are potential challenges for sports betting companies to navigate. Aggressive promotional tactics and increasing taxes from state governments can impact profitability. It’s essential for investors to stay informed about industry trends and company strategies to make informed decisions in this evolving market.
At Extreme Investor Network, we strive to provide you with in-depth analysis and expert insights to help you navigate the world of investing. Stay tuned for more valuable content on sports gambling stocks and other investment opportunities.