3 Sports Stocks That Are Winning The Game
Even with the sports calendar disrupted because of the pandemic, there are several companies with exposure to the industry that are quickly becoming Wall Street favorites.
DraftKings (NASDAQ:DKNG), FuboTV (NYSE:FUBO), and NVIDIA Corporation (NASDAQ:NVDA) are posting strong scores with their double-digit growth amid this gloomy economic surrounding. They might not own teams or stadiums, but they have a firm grasp on sports fans. Besides being greatly helped by the pandemic-induced quarantines, they are making real money.
DraftKings Is Positioned To Benefit From Future Bets
Fantasy sports is a big booming business today, and DraftKings has positioned itself as royalty in this niche. It's the leader in real-money wagering on fantasy sports, but it also emerged as a major player in traditional gambling with its online sportsbook business.
During its latest quarter, revenue rose 42% on a pro forma basis as audience soared by 64% over the past year, with monthly paying customers now amounting to 1 million.
The future is even brighter. Full-year guidance for 2020 has been significantly improved with the top line expected to rise somewhere in the range between 34% and 57% next year. DraftKings is striking partnerships with leading sports-viewing outlets, positioning itself to take advantage of future bets on both fantasy sports and games.
Nvidia Is As Diversified As It Gets
Some sports fans may cringe at considering video gaming as an athletic endeavor, but there's no denying that e-sports is growing faster than the sports market itself. Gaming-market intelligence specialist Newzoo forecasts the market to be worth $950.3 million market this year while increasing to $1.6 billion by 2023.
The best part about NVIDIA is its diversification. It is the leading maker of graphics cards that give PC players a competitive advantage of reacting faster on the playfield, while also offering broadcasting tools and cloud-gaming solutions to help companies to step up their game.
NVIDIA does a lot more than just give gamers an edge with its data centers, artificial intelligence, and autonomous driving. In other words, it is everywhere where it's worth being. Therefore, it is not surprising that its revenue skyrocketed 57% in its latest quarter with adjusted earnings growing even faster.
It's FuboTV's Time To Shine
The Walt Disney Company Corp's (NYSE:DIS) ESPN used to be the ultimate premium package for diehard sports fans, but FuboTV is on its way to taking the crown. It is the first sports-first streaming service that includes regional and premium sporting events in its full-features digital content package.
During its latest quarter, adjusted revenue soared 71% as the subscriber base grew 58% to 455,000 premium accounts over the past year. Moreover, users are now willing to pay more for its service as average revenue per user increased 14% over the past year as it now amounts to $67.70 per month.
The pandemic has only amplified the cord-cutting shift to streaming. Although DISH Network Corporation's (NASDAQ:DISH) Sling TV, Alphabet Inc's (NASDAQ:GOOG) YouTube TV, and Disney's Hulu's Live TV have a decent range of sports content, FuboTV is the only live-TV platform streaming available games in 4K resolution.
This expectation is reflected in its guidance for year-end subscribers that has shot higher through the second half of the year as this seems to be FuboTV's time to shine.
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