Investors Play to the Whistle
The stock market is forward-looking, and investors have sports to look forward to, at last! The biggest stocks in the sports betting pool are in focus, and stock pickers are poised on the start line, keen not to jump it!
We’re talking about DraftKings and GameAccount Network (GAN). DraftKings’ share price seems complacent re the sports schedule going forward. It assumes we have punters betting full swing on Major League Baseball (MLB) and college National Football League (NFL) in the third and fourth quarter, but that’s up to college students returning to campuses.
The bullish betters need to be careful with the very hard and real risk that some sports like baseball and football don’t happen this year. The bearish short-sellers need to be careful valuing a company in the short-term based on something that’s missing but that we know will come back.
This is also a dilemma for advertising giants who’ve got sports sponsorships. The (re)opening game between the New York Yankees and Washington Nationals gave Disney’s ESPN its largest viewership ever, but national leagues are cancelling preseason matches left, right, and center.
Interpublic Group specializes in consumer and digital advertising and, according to marketing experts, will share in $10 billion losses for the first half of this year. The pay-per-view industry is set to lose $600 million, and sports apparel retailers an unknown figure. Play to the whistle, folks!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.