Short-Sellers Just Put The Market’s Best Gambling Stock On Sale

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Sports gambling is big business these days. It's become much more mainstream over the past five years. Major shifts in public opinion have led 25 U.S. states to legalize sports betting in some form or another since 2018.

As of 2020, it was a $1 billion industry, and credible estimates say it'll grow six times larger to $6 billion by 2023. From that perspective, it's not all that different from the cannabis boom we're seeing right now.

For betting companies and their shareholders, it's like a license to print money – more and more as time goes on and gambling gets more market penetration.

But there are still doubters… kind of.

It'd be more accurate to say there are short-sellers. An explosive "report" this week on one of sports betting's must-own names knocked the shares way down.

But I'm not worried about it, and I'll show you why in a second. This is an opportunity to line our pockets and learn a little more about why good stocks tank sometimes.

Why This Stock Got Slammed This Week

DraftKings Inc. (Nasdaq: DKNG) is bigWhat started as a niche fantasy sports platform has evolved into one of the fastest-growing sports gambling companies in the country.

The company has been making big moves to capitalize on the growing popularity of sports gambling. In January, DraftKings announced that it was expanding into Virginia – making it the 12th state in which customers could wager using its platform.

And as of this past April, DraftKings is also now one of just three official sports betting partners of the National Football League (NFL). It also boasts lucrative partnerships with Major League Baseball (MLB), the National Basketball Association (NBA), the National Hockey League (NHL), several martial arts and pro fighting leagues, and even English Premier League soccer over in the United Kingdom.

On paper, the company has reduced its losses per share for each of the previous two years, and is coming close to profitability after a massive expansion campaign – one that seems to be going according to plan.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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Anne Davis 1 month ago Member's comment

That hot sale only lasted a few mins last Tues morning.