6 Reasons Why Golden Nugget and DraftKings Stocks Are A Good Buy Right Now

Have you ever considered purchasing shares and stocks in the online betting industry? There is no doubt that the market is growing for these entities and as a result, any sportsbook or sports betting app developer is worth investing in as a shareholder. There are two great choices worth considering at this point. They are Golden Nugget and DraftKings. In this article, we will explore what makes each a good option to buy into as a shareholder.

 

DraftKings Is A Recent SPAC

A Special Purpose Acquisition Company (SPAC) typically has a two-year window to complete a deal. If the time limit is reached, the company is faced with liquidation. In some cases, the interest that is earned from the trust can be used as working capital for the SPAC however, following an acquisition, the SPAC is often listed on a major stock exchange.

DraftKings recently went public following a SPAC deal and at the time, their share price had gone up somewhat. However, in March of this year, the DraftKings shares were only trading at about $12. The SPAC merger with Diamond Eagle Acquisition Corp. saw the stock prices increase once DEACU switched to the DKNG stock symbol and DraftKings name in April. The shares were trading as high as $44.80 in May. And as of yesterday, the stock is trading at $33.91 after larger than expected loses.

 

How The DraftKings Chart Activity Can Be Mimicked By Golden Nugget

Here is another example of what can happen to share prices when a sportsbook merges with another company. Landcadia Holdings II was trading regularly in the $10 per share range and this was a fairly steady price that held for many months. When the two merged in June of 2020, the share price jumped to around $17 per.

While the news has since passed and things are settling down as the deal is finalized, the share prices have since dipped but are still a bit higher than they were before the acquisition took place. Again, the pattern followed that of DraftKings right down to and including when the stock symbol changing to reflect the Golden Nugget acquisition.

 

How COVID-19 Has Changed The Business Model

The pandemic has had quite an impact on gaming events with shutdowns and closures. The same has happened with casinos and any type of public gathering. With a restart program already in motion, the interest in participating in face-to-face activities has changed – probably forever.

There is a huge interest in options that do not involve interacting with people nearby and online gaming has benefitted greatly from that. As a result, online gaming activity has grown as has online gambling. The technology is there and many sportsbook companies that have online properties are seeing increases in activity thanks to the pandemic.

There is also no indication of when that may come to an end. This spells success for the existing online gaming companies and their publically traded stocks and proves there is a demand for more to enter into the industry. This makes investing in companies such as DraftKings or Golden Nugget wise and timely investments.

Bonus up to:
$1025
Welcome Package
$25 free bonus + deposit match, first deposit up to $500.
4.5 rating
4.5
Bonus up to:
$$600
Welcome Package
* New customers only. 100% match bonus based on first deposit of up yo $600.
4.3 rating
4.3
Bonus up to:
$500
Welcome Package
* New customers only. 100% match bonus based on first deposit of up to $500.
4.3 rating
4.3

 

There Are Also Downsides To Consider Regarding Gambling Stocks

There are currently two main downsides attached to the Golden Nugget deal and its stock.

The most obvious of them is the possibility that the deal does not get completed or happens to get delayed in some way. However, with the way the DraftKings deal went, chances are that this one will also go through without a hitch.

The other, less obvious downside is more of indirect influence. That would be a market correction where share prices fall to more reasonable levels. Market corrections happen and are a normal risk in the stock market. Typically, following such a drop, the shares slowly climb back to near where they were before the correction.

 

Another Reason Golden Nugget Is A Good Investment

A management team with experience speaks volumes and Golden Nugget has just that. The team is led by billionaire Tilman Fertitta. Fertitta has a reputation for making serious money in various ventures. He has been involved in hotels, restaurants, and casinos and truly understands the intricate details of what makes any of these businesses successful and how to combine all the best parts to build great success.

 

Online Gaming Is Attracting More Than Just Sports Fans

Robinhood traders are those who use a free-trading app to trade stocks, options, exchange-traded funds, and cryptocurrency. The attraction to this form of trading is that it is done without the need to pay commissions or fees.

Robinhood traders and millennials are both greatly attracted to online gaming. Speculation is that since these two different demographics have been surrounded by technology their whole lives, that any form of online entertainment is going to spark their interest.

As it turns out, this is partly the reason. It is also reason enough to say that younger generations are keen to become more involved in the online gaming community and if that means investing through the stock market, then that is what will take place.

Also, and this is very important, Robinhood has close to 18,000 active accounts. The majority of users who are active on that platform happen to be millennials.

But it is important to point out that the users of Robinhood are not as impressed about value as you would imagine someone buying or selling stocks would be. Instead, the millennials are far more interested in the use of disruptive technology by fast-growing companies. By disruptive, they are seeking innovation, things that are outside the norm, and currently online gaming falls into this category.

 

Summary

Investing in the future is always a good idea. It gives you some footing and also puts you in the driver’s seat in securing your future. With the explosion of online sportsbooks and other betting opportunities, now couldn’t be a better time to invest in these types of businesses.

DraftKings and Golden Nugget have established a pattern that may be repeated frequently as companies merge with online sportsbooks to enhance their portfolios. Participating in a share sale will also enhance your portfolio as online sportsbook companies are currently hot items as the online sports betting industry continues to expand with COVID-19 giving it a slight nudge into the future.

Bonus up to:
$1025
Welcome Package
$25 free bonus + deposit match, first deposit up to $500.
4.5 rating
4.5
Bonus up to:
$$600
Welcome Package
* New customers only. 100% match bonus based on first deposit of up yo $600.
4.3 rating
4.3
Bonus up to:
$500
Welcome Package
* New customers only. 100% match bonus based on first deposit of up to $500.
4.3 rating
4.3

Top Casinos
4.8 rating
Bet MGM Get $25 FREE Bonus +$1,000 deposit match
4.3 rating
New Jersey Borgata Online Casino: Get up to $600 deposit match bonus
4.3 rating
Party Casino: Get $100% welcome bonus up to $500.