Investing in Sports Betting Stocks
Investing in sports betting stocks has become a lucrative investment option since sports gambling became legal. With 20 states now legalizing sports betting, investors have found a number of opportunities in the sector. This segment has also provided tailwinds for several companies, including MGM Resorts, Caesars Entertainment, and FuboTV.
Investing in sports betting stocks has become more popular with investors, particularly those looking to take advantage of the lucrative potential for early stage ventures. Many investors have lost money in this sector, but there have also been a number of companies that have shown signs of resurgence in recent months. However, investors should also be careful about purchasing any single company. It is crucial that you take your time and research each company thoroughly.
Many sports betting stocks are undervalued. A number of companies in the industry have been able to grow their revenues through strong quarterly earnings reports. In addition, a number of companies have also experienced share appreciation since the start of the year. These stocks include DraftKings, Genius Sports, and Fubo TV. Some of these companies have had share prices rise by as much as 30 percent in the year. In addition, several companies have had shares trade for less than $30 per share.
Sports Betting Review – Investing in Sports Betting Stocks
The sports betting industry has seen a number of changes over the past year. There were several large losses in the summer months, as well as some positive momentum in August. However, the overall momentum was not strong enough to help sports betting stocks in the end. Several companies in the sector retreated in the final weeks of September. In addition, Hurricane Ida hampered the second half of the month.
In the past month, three of the nine betting stocks have declined. In addition, one exchange-traded fund (ETF) has retreated by a large margin. This ETF has provided a total return of -34.3%. The Roundhill Sports Betting & iGaming ETF has underperformed the broader market over the past year.
Some companies have also suffered from accounting anomalies. These anomalies can include restructuring costs and tax law changes. While these anomalies are not necessarily cause for concern, they can negatively affect the overall performance of the company. If you are considering investing in sports betting stocks, it is crucial that you do your research before making a purchase.
One of the top sports betting stocks is Penn National Gaming (PENN). The company has a market cap of $13 billion and operates iCasino products and a social casino online. It also has a strong offline presence. The company owns a 36% stake in Barstool Sports and a 36% stake in Hollywood Casino. The company launched Barstool Sportsbook in Pennsylvania in September 2020. It handled $11 million in wagers in its first week of operation.
In addition to Penn National Gaming, other companies that have been able to grow through sports betting are MGM Resorts, Caesars Entertainment, Genius Sports, and FuboTV. In addition, the sports betting industry has also benefited from strong quarterly earnings reports. The sector was also helped by the recent surge in esports.
