Why now is a bad time to start buying DraftKings stock

This year has been incredibly confusing for a number of industries so far.

The coronavirus pandemic has caused a mass of disruption to all sorts of sectors and businesses around the world; changing daily routines and causing mass losses in profit for countless people. It’s been an incredibly difficult time for many people, especially smaller businesses and independent creators.

As the markets have been going up and down due to the coronavirus pandemic, people are trying to make their mark by buying up stock. To a degree, it does make sense- prices are dropping, so newer investors are looking to get their foot in the door. This is becoming more and more common as 2020 goes on.

One particular industry that’s seeing a lot of attention right now is the sports betting industry. As readers of our blog posts and articles will know, here at NJ Gambling Fun, sports betting is something that we specialize in. With recent changes around the world moving to legalize sports betting and online sports betting more, this industry is absolutely booming right now.

Certain industry giants within the sports betting industry are seeing a lot of interest right now, too. DraftKings is one company that’s receiving a lot of interest and investment from the community right now, and many people are touting it as one of the main stocks that investors should invest money into this year.

However, not every investor or financial expert shares this opinion. In this article, we’ll be taking a look at why some people in the industry think that investors should hang fire before investing their money into DraftKings this year.

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Who is DraftKings? 

Before we get started, let’s make sure that we’re all on the same page and look at who DraftKings actually is. This company is one of the leading providers in online sports betting and fantasy sports tournaments right now, and they are based in Boston, Massachusetts. The company recently merged with SBTECH.

Recently, DraftKings made headlines by going public. They’ve received some incredible attention from the stock market, and have been consistently providing a high quality of service to their online community of fans. DraftKings is one of the main sports betting companies that have continued to work through the pandemic to entertain their customers.

 

Why could it be a bad time to start buying DraftKings stock?

Despite the hype around DraftKings right now, some experts are encouraging potential investors to take a step back before investing in this company. As noted in this handy Investorplace article, DraftKings is experiencing a massive rush right now. As many popular sports events have been cancelled, many people have turned to sports betting stocks instead. It helps a lot that the company exceeded all expectations earlier this year when it broke all records in terms of how many people bet online during the Super Bowl game.

Finally, its stock is also going through the roof now because the company recently settled the 2019 Sports Betting National Championship Class Action Lawsuit. Investors in particular love it when a company gets rid of some liabilities.

If you’re set on investing in DraftKings in particular, some experts on the market right now would encourage you to wait. As more and more sporting events start picking up again, the price of DraftKings stock will start to change and reflect this. Don’t get caught out by hype and flashiness surrounding this unicorn stock this year.

This doesn’t mean that DraftKings is necessarily a bad stock to invest in, though. In fact, as pointed out here, DraftKings could be a wonderful investment for a long term plan. This company is already making waves within the sports betting community and they’re sure to have even more fantastic products out later.

Generally speaking, DraftKings is a brilliant company. If you’re interested in sports betting at all, we would absolutely recommend checking out their products. They have wonderful fantasy sports tournaments, and plenty of other fun ways to bet online too. DraftKings offers services that are suitable for every single kind of sports gambling fan.

This doesn’t mean that you should jump straight into investing with them, though. As we’ve noted, it could be more effective to pull back and wait for prices to drop. The next few months are surely going to be volatile and explosive for the stock market, so the general consensus seems to be that investors should wait.

 

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Overall observations on the DraftKings stock

Of course, there’s no one particular way to see whether a stock is going to rise or fall with absolute certainty. DraftKings is absolutely one of the most interesting businesses in the game right now, yet recent sports cancellations and disruptions due to the coronavirus pandemic have influenced the sporting world quite heavily.

If you are planning to invest, we’d recommend spending some time researching multiple companies and stock options before spending your money. Look into different industries and get different opinions on your chosen stocks before you decide to make an investment. Researching like this may seem dull, but it is an essential for success.

Regardless of whether you’re an investor or not, it cannot be disputed that DraftKings is certainly going to have an interesting finish to the year. They’re one of the most interesting companies around right now, and are absolutely one to watch. Our team will be keeping a close eye on DraftKings as we head further into 2020.

Want to read more about the gambling world? Looking to learn more about sports betting and gaming? Our in-house writing team has got you covered. We’re always updating our website with the latest and greatest in sports entertainment, covering everything from casinos to soccer. We’d suggest taking a look at this piece on the best online NJ casinos to start off with.

If you’d like to get in touch with a member of our team to ask any questions or share any concerns that you might have, we’d be more than happy to hear from you.

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