Wide range of gambling-related companies have outperformed the overall market this year
Pandemic expected to accelerate state-level adoption of legal sports wagering
Industry growth to be buttressed by heavy confluence of sports events this fall
One of Wall Street’s highest flyers these days is a relatively small Boston, Massachusetts-based company that is focused on several facets of fan engagement, is not yet profitable, and has plenty of exposure and risk from the lack of live sports around the world due to the Covid-19 pandemic.
But it still has seen its stock more than double over the last seven weeks, even after a broad dive of nearly 7 per cent across the entire US stock market on June 11.
That company is none other than the newly public DraftKings, which is just one of several sports gambling-related companies seeing their shares far outpace the overall stock market in recent weeks as Wall Street quickly gravitates toward the upside possibilities of legalized sports wagering in the US.
DraftKings, which opened at $17. 81 per share after going public in late April amid a three-way merger with gaming technology provider SBTech and special purpose acquisition company Diamond Eagle Acquisition Corp. , is now trading above $36.
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