Sports-betting firm DraftKings (NASDAQ:DKNG) has become something of a celebrity in the world of equities. Check any popular financial message board or chat room and you’re likely to find plenty of buzz surrounding DKNG stock.
Speaking of celebrities, there are few catalysts in the business world as exciting as a high-profile endorsement. It matters when a famous individual takes a position in a business because that celebrity will hopefully use their influence to promote the company’s interests.
And that in turn should provide value to investors in the company. At least, that’s how it’s supposed to work. Now DraftKings is putting that theory into practice with a celebrity endorsement from a sports hero with massive clout.
Besides, this particular celebrity is known for hard work, dedication and business savvy. There’s no guarantee that any of this will translate into big-time revenues of course. Nevertheless, it’s quite a coup for DraftKings and the company’s shareholders should appreciate the magnitude of this event.
DraftKings Stock at a Glance
It wouldn’t be an exaggeration to say that DraftKings shot the moon after the onset of the novel coronavirus, surging higher than anyone anticipated. It didn’t happen overnight, but once it started up, the bullish moves were unflagging.
2019 was a lackluster year for DKNG stock, barely treading water above $10. The coronavirus crisis crashed most of the market back in March, and DraftKings was no exception — but not for too long.
After touching a short-term low of $11 and change, DraftKings stock took off like a rocket. The summertime ascent to $44.79 was swift but almost inevitable as people were stuck at home and online sports betting became a popular pastime.
This was followed by a brief retracement, but the bulls pushed the DraftKings stock price back into the $40s in September. And, that’s when a (literally) game-changing event took place for DraftKings enthusiasts.
There’s No One Like Mike
Basketball legend Michael Jordan isn’t just a star among fans of the sport. An argument could be made that Jordan is in fact the greatest living athlete in any sport. After all, he’s a six-time National Basketball Association Finals Most Valuable Player. And naturally, Jordan’s been inducted into the NBA Hall of Fame.
So it was headline news inside and outside of the sports betting world when DraftKings announced that Jordan would serve as a special advisor to its board of directors.
In this role, Jordan is expected to provide strategic advice and guidance to the board of directors on DraftKings’ key business initiatives. As compensation, Jordan will receive an equity stake in DraftKings.
Becoming a Sports Icon
Naturally, DraftKings Co-founder and CEO Jason Robins was eager to emphasize the shareholder value proposition provided by this headline-grabbing endorsement:
“Michael Jordan is among the most important figures in sports and culture, who forever redefined the modern athlete and entrepreneur… The strategic counsel and business acumen Michael brings to our board is invaluable, and I am excited to have him join our team.”
The news was received with glee by the trading community. Upon hearing of this encouraging development, investors quickly bid up DraftKings stock price by nearly 7%.
And this isn’t the only piece of good news for DraftKings shareholders. Not long ago, the Chicago Cubs baseball franchise named DraftKings its Official Sports Betting and Daily Fantasy Partner.
Clearly, short-sellers are going to have a tough time with DraftKings stock. This company is quickly establishing itself as a sports icon in its own right.
DraftKings stock is red-hot right now, and deservedly so. Like Jordan, DraftKings is pursuing its goals relentlessly.
Just in September, we’ve witnessed two exciting developments for the company. So if you’re considering a long position in DraftKings stock, now is the time to take the ball and run with it.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.