Looking to place your bets on a digital sports entertainment and gaming company? If so, then a solid pick would be DraftKings (NASDAQ:DKNG). Indeed, the past year’s price action shows that DKNG stock is a textbook example of what traders would call a growth stock.
But is the rally truly justified? Since DraftKings continues to generate robust revenues, we could certainly build a strong argument that the bull run will continue.
InvestorPlace contributor Vandita Jadeja already covered DraftKings’ fourth-quarter fiscal results, which were impressive. Beyond that, there are a couple of power-packed deals in play that ought to get the DraftKings bulls in a fighting mood.
DKNG Stock at a Glance
There were a couple of times when the DKNG stock bulls were down for the count, but overall, the share price has moved relentlessly upwards over the past year.
It’s amazing when you consider that shares were available for less than $20 just one year ago. During the nation’s recovery from the novel coronavirus pandemic, DraftKings proved to be a resilient and thriving business.
As a result, DKNG stock rallied all the way up to $63 in October of 2020. There was a retracement after that, but this was followed by another multi-month uptrend.
It was in mid-March that DKNG stock reached its 52-week high of $74.38. However, the bulls got knocked down later in the month as the share price retreated below $60.
It look like it’s going to be a knock-down, drag-out fight between buyers and sellers for DKNG stock. Perhaps a pair of value-added partnerships will help the bulls prevail in the end.
Massive Exposure
DraftKings is, according to the company, committed to creating the world’s favorite games and betting experiences. Accomplishing this goal would mean exposing the DraftKings brand name to as many sports fans as possible.
DraftKings reportedly took a giant step in pursuing this objective when, subject to regulatory approvals, the company became an Official Gaming Partner of World Wrestling Entertainment (NYSE:WWE).
This deal involves DraftKings’ popular free-to-play pools product and specifically a free-to-play pool at WWE’s two-night sports and entertainment extravaganza WrestleMania in April.
In accordance with the agreement, DraftKings is set to receive an exclusive license to media assets and in-game branding for WWE pay-per-view events.
Plus, DraftKings’ and WWE customers will be able to participate in integrated, free-to-play pools contests and products while experiencing digital promotion and program integration.
Just the WrestleMania event by itself should provide DraftKings with plenty of exposure. WWE has a massive following, and this collaboration has the potential to draw many more customers to DraftKings.
Another Groundbreaking Deal
Surprisingly, the WWE deal isn’t DraftKings’ only recently established fighting-focused partnership.
In March, DraftKings announced a groundbreaking agreement with famous mixed martial arts organization UFC.
Through this agreement, DraftKings will become UFC’s first Official Sportsbook and Daily Fantasy Partner in the U.S. and Canada.
What does this mean for DraftKings? The company “will now be able to offer in-game promotions, activations, in-broadcast odds integrations and UFC branding across its daily fantasy and betting products and will possess rights to use official UFC marks and logos.”
As UFC President Dana White points out, this should be a win-win for both businesses since UFC has no off-season and therefore the action “will be non-stop for fans of UFC and DraftKings.”
Combat sports, and UFC in particular, are quite popular. So once again, the opportunity here for the DraftKings brand name to reach new audiences and potential customers is huge.
The Takeaway
The WWE and UFC platforms are already well-known to fans of combat sports. Could the aforementioned partnerships help to boost the DraftKings brand name?
In all likelihood, the answer is yes. And if the DKNG stock holders were knocked down momentarily, rest assured they’ll get back into the fight soon enough.
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.
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