The pandemic could not stop the growth of the online betting and fantasy sports company DraftKings (NASDAQ:DKNG) stock. DraftKings has been making news lately and is growing its presence.
The company is on an expansion spree and has recently marked a deal with a non-fungible token (NFT) platform. DKNG stock has shown remarkable growth and is one of the top stocks to own in 2021.
With more states legalizing sports betting, the stock has consistently grown. It hit the high of $63 in October 2020 and saw an all-time high of $74 in March 2021.
The stock has come down since then and is trading close to $50 today. DKNG stock has increased 34% over the last 12 months. I have always been bullish on DKNG stock and believe it has immense potential to grow.
Let’s take a look at why it should be on your radar.
Futuristic Business Model
I strongly believe that the company has a futuristic business model and it looks very promising. Despite the pandemic, DraftKings has continued to grow and as businesses reopen, the business opportunities are only growing. The company is in the growing stage and the opportunity is young. It may not be profitable now but the business will grow very fast.
DraftKings will evolve with live streaming and with an end to movement restrictions, the company can brace itself for a surge in the number of users. States are legalizing online betting and DKNG’s market is widening. The company holds a 30% share of the online sports betting industry and 19% for iGaming. There is high potential for revenue and growth in both segments.
Currently, the expenditure is much higher than the revenue but it is helping in attracting more users and thus, generating revenue. If the company manages to increase the paid user base, it will lead to massive growth over the next two years.
New state launches will continue to impact the growth of the company and will continue to increase numbers in the future. DKNG is making well-timed moves in the industry and is partnering with some of the biggest sports players to drive users to their platform.
One might argue that the company has seen better days but this dip in DKNG stock is a great opportunity to buy.
Launch of an NFT Platform
DraftKings is making news for the deal with Autograph, an NFT platform. This deal is going to be huge for the company. The marketplace will make available digital sports collectibles that are offered by Autograph.
The company will also host the releases of digital sports memorabilia and act as a facilitator for the second-hand market.
Users will be able to purchase, trade, or sell their collectibles through the account. NFTs are hot property today and they are gaining popularity across the globe. DraftKings has made the right move at the right time and is moving towards expanding the market.
With the availability of NFTs on its platform, the company will be able to attract new users to the platform.
The Bottom Line on DKNG Stock
DraftKings is here to stay and it is only soaring higher. With an entry into the world of NFTs, the company is making sure that it lays a concrete foundation for the business.
The company has consistently attracted users and is growing across the length and breadth of the country. The Q2 earnings will be proof that DKNG is going higher with the business model crafted for the future.
As the pandemic slowly comes to an end, there is a lot to look forward to. DraftKings has promising long-term prospects in the industry and is a leader in the world of sports betting.
For now, the dip in DKNG stock is a great buying opportunity.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.