Today, investors in DraftKings (NASDAQ:DKNG) and DKNG stock are seeing declines of around 6% at the time of writing. Indeed, today’s move to the downside appears to be the result of what could be a positive catalyst for the company long term.
As a company intent on growing its dominance in the sports betting space, DraftKings has been active in the mergers and acquisitions (M&A) realm. Today, DraftKings announced it has made a $20 billion offer for U.K.-based sports betting company Entain.
As with most large deals of this size, a significant premium has been paid to make the deal work. Accordingly, Entain’s stock price increased by 17% in earlier trading, reflecting the premium paid by DraftKings.
That said, over the longer term, this deal could serve investors in DKNG stock well. This is a company that’s been hyper-focused on increasing its market share in the sports betting space. However, DraftKings has also been very active in growing its other business segments as well.
Let’s dive into one of the other key catalysts investors in DKNG stock are watching today.
DKNG Stock Growing Its NFT Footprint
One of the key factors enticing young investors to DKNG stock has been the company’s innovative approach to growth. Aside from its core sports betting business, DraftKings has been active in finding other high-profile avenues for growth. Recently, this has involved the non-fungible token (NFT) space.
Via DraftKings Marketplace, NFT enthusiasts have the ability to purchase popular NFTs. DraftKings has leveraged its sports-related partnerships to become a leader in the sports-oriented NFT world. Accordingly, there’s been a lot of anticipation around exactly how DraftKings could leverage this space for growth.
Today, DraftKings announced that it would be launching the first set of NFTs co-designed by Tiger Woods. This launch will be available to view on Autograph.io and for purchase on DraftKings Marketplace. This launch is expected to start on Sept. 28.
Indeed, the world of sports-related NFTs is still in its infancy. DraftKings is hoping to gobble up as much market share as possible in this nascent space. Accordingly, investors seem to like the leverage DraftKings provides to this growth area.
On the date of publication, Chris MacDonald 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.