Sports-betting stocks have had giant pullbacks lately. Investors may want to keep an eye on them after the spectacle of the election passes.
- DraftKings (DKNG) has slid all the way back to its levels from early September. That followed a $1.66 billion stock sale for $52 each on October 7. (Earnings confirmed for the premarket of Friday, November 13.)
- Penn National Gaming (PENN) is down less, about 31 percent from its peak. PENN, which is associated with David Portnoy and Barstool, reported strong earnings and revenue last week.
These are small, niche companies with their own unique stories. It’s not a surprise to see them fade as the market focuses on mega-issues like stimulus and control of the White House. They also face the risk of increased coronavirus cases interfering with professional sports.
Still, investors and analysts view sports betting as a big growth area following its legalization 2-1/2 years ago. And, regardless of the pandemic, we’re still moving into the heart of football season. At a certain point, attention could return to this corner of the market.