A leader in the online sports gambling industry, DraftKings (NASDAQ:DKNG) is expanding its presence across the States and is expected to benefit from the upcoming football season. The company is making well-timed moves to build new offerings and achieve growth. It has successfully partnered with some of the top sports companies to offer a unique experience to the users. DKNG stock is up 22% over the month and is trading close to $60 today.
The stock recorded an all-time high of $74 and the current dip is a great buying opportunity. DraftKings reported strong Q2 numbers and is one of the most valuable companies in the industry with a valuation of $23.9 billion. With that in mind, let’s take a look at my bullish thesis of DKNG stock.
The Football Season Is Huge
There is nothing as big as football in the USA and I believe the National Football League (NFL) season will give it a strong boost. The company already has more than 1.1 million monthly unique players and it will be able to attract users during the football fiesta. The company stated that it does not expect any slowdown in the coming months which shows that it is ready to make the most of this season.
DraftKings entered into an agreement with Genius Sports to provide the complete range of official sportsbook data in addition to the complete suite of NFL products.
In April, the company was chosen as one of the NFL’s tri-exclusive sports betting partners and this is when Genius Sports become the exclusive distributor of the official statistics and sports betting data feed. This makes DKNG one of the first operators that have a full Genius Sports NFL offering including the pre and in-game engagement.
This allows DKNG users to wager on the competitions, thus, enforcing the position of the business as the top provider of live betting products.
DraftKings recently entered into an agreement with Simplebet, which is a tech company that allows micro-betting. As per the deal, Simplebet will offer its products to the users of DraftKings for NFL, Major League Baseball, and other college football contests. This deal will strengthen the offerings of DKNG and will make it an ideal choice for die-hard sports gamblers.
Growing National Expansion
DraftKings is constantly expanding its presence across different states and it recently went live in Arizona, making it the 44th state to offer Daily Fantasy Sports. This is the perfect time to launch DraftKings in Arizona as the sports season is set to begin. It will be the most beneficial time for the company to acquire new users and grow its presence.
The company is offering a pre-registration bonus to attract users to the platform.
DraftKings is heavily invested in expansion and as states legalize online betting, it is not wasting any time in expanding across the country.
The only states where betting is prohibited now are Hawaii, Alabama, Louisiana, Idaho, Montana, Iowa, Washington, and Nevada.
The Bottom Line On DKNG Stock
I am very bullish on DKNG stock and believe it is for the long term. The company has made some strong partnerships in the industry and is one of the top players today. As the lockdown ends and we resume normalcy, the company will gain from the sports season and it will take DKNG stock higher.
The fundamentals of the company are strong and its user growth is impressive. Cathie Wood bought $60 million worth of DKNG stock recently which has led the stock higher.
I believe any dip in DKNG stock is a great buying opportunity. The company will report impressive revenue numbers in the coming quarter and it will benefit investors.
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.