Full Answer
Is GNOG a good stock to buy in 2021?
On Aug 11, 2021 "Benchmark" gave "" rating for GNOG. The price target was set to $18.81+1.7%. The stock lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled.
Is the stock in the middle of a falling trend?
The stock lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -49.82% during the next 3 months and, with a 90% probability hold a price between $4.18 and $5.07 at the end of this 3-month period.
What could happen to DraftKings stock if its stock price falls?
Shares of DraftKings have lost over one-third of their value from highs earlier this year. As the company tries to make two large acquisitions, the falling stock price could make deals more difficult. As DraftKings burns cash, a lower stock price could also lead to dilution if management needs to raise cash from shareholders.
Is Golden Nugget's stock at risk of breaking support?
On the downside, the stock finds support just below today's level from accumulated volume at $7. 15 and $6. 78. There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Golden Nugget Online Gaming, Inc.
Is GNOG stock a good buy?
Analysts like Golden Nugget Online Gaming stock less than the stock of other Consumer Discretionary companies. The consensus rating for Golden Nugget Online Gaming is Hold while the average consensus rating for consumer discretionary companies is Buy. Learn more on how GNOG compares to other companies.
What will happen to GNOG?
DraftKings announced a deal to acquire GNOG in August 2021. DraftKings pay 0.365 newly issued shares for each common share of Golden Nugget Online Gaming, in a transaction that values the operator at $1.56bn (£1.19bn/€1.42bn).
Is GNOG being shorted?
Short interest is the volume of Golden Nugget Online Gaming shares that have been sold short but have not yet been closed out or covered. As of April 15th, traders have sold 2,310,000 shares of GNOG short. 5.45% of Golden Nugget Online Gaming's shares are currently sold short.
Will GNOG stock go up?
During the day the stock fluctuated 0% from a day low at $5.78 to a day high of $5.78....Predicted Opening Price for Golden Nugget Online Gaming, Inc. of Monday, June 6, 2022.Fair opening price June 6, 2022Current price$5.78$5.78 (Undervalued)
Is DraftKings buying GNOG?
Why is DraftKings buying GNOG? DraftKings said last year the acquisition would help it reach iGaming customers who do not necessarily bet on sports. “We are very good at cross-selling sports customers into iGaming, but our database is mainly male and focused on sports,” DraftKings CEO Jason Robins said.
Who is GNOG merging with?
Synergies and Strategic Benefits of the Acquisition The GNOG Acquisition will deliver significant benefits to DraftKings as well as expected synergies of $300 million at maturity. DraftKings will deploy a multi-brand approach that will enhance cross-selling opportunities and drive increased revenue growth.
What is the stock price of Golden Nugget?
Performance OutlookPrevious Close5.78Day's Range5.30 - 5.8352 Week Range4.77 - 23.24Volume6,506,856Avg. Volume954,7843 more rows
How do I buy DraftKings stock?
DraftKings Inc is a gambling business based in the US. DraftKings shares (DKNG) are listed on the NASDAQ and all prices are listed in US Dollars....How to buy shares in DraftKingsCompare share trading platforms. ... Open your brokerage account. ... Confirm your payment details. ... Research the stock. ... Purchase now or later.More items...
What company did DraftKings buy?
DraftKings purchase of Golden Nugget Online Gaming nears completion. Sports betting giant DraftKings expects to close its $1.56 billion acquisition of Tilman Fertitta's Golden Nugget Online Gaming by the end of next month, but it's unclear when the company will operate retail and online sportsbooks in Nevada.
GNOG Stock Trend
Given the current short-term trend, the stock is expected to fall -45.17% during the next 3 months and, with a 90% probability hold a price between $3.27 and $4.66 at the end of this 3-month period.
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Why is Golden Nugget important?
As one of the smaller online gambling companies, Golden Nugget Online Gaming needs to grow quickly to get a decent market share. That's why the company's growth rate is so important.
Does Travis Hoium have a position in any of the stocks mentioned?
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The Bull and Bear Cases for GNOG Stock
As mentioned above, there’s good reason why investors are excited about Golden Nugget Online Gaming. It may not be the largest online gambling company out there. It may also lack the deep pockets of gaming industry giants like Caesars (NASDAQ: CZR) and MGM (NYSE: MGM ).
Other Concerns to Keep in Mind
Along with the aforementioned uncertainties with its multi-state expansion, there are other risks on the table. InvestorPlace’s Will Ashworth highlighted a major one in his Jan. 19 article on GNOG stock.
Bottom Line: Tread Carefully
Over the long-term, Golden Nugget Online Gaming could live up to investors’ current sky-high expectations. Yet, with the aforementioned risks/uncertainties, coupled with prior price movements, there’s a big risk shares take a dive in the near-term before they continue to rise over the long term.
NASDAQ: DKNG
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DraftKings is trying to use its stock to acquire the competition, which will be tougher as the stock falls
Shares of DraftKings ( DKNG -0.28% ) have fallen 35% from their all-time high earlier this year, and are down over 25% in the last few weeks alone. The stock is down in part because growth stocks are falling as interest rates rise, but investors also haven't been pleased with DraftKings' very aggressive acquisition strategy.
A growth machine
DraftKings is absolutely a growth machine. The company grew revenue 73% in the past year, and expects to generate $1.21 billion to $1.29 billion in revenue this year.
NASDAQ: DKNG
Revenue growth doesn't come without a price, though. You can see above that the company also burned $425 million in cash over the past year, and that cash burn rate is growing as DraftKings spends on sales and marketing and expansion into new territories.
DraftKings' stock price is important
The falling stock price is important for a couple of reasons. First, stock sales can be used to fund organic growth initiatives, like spending on sales and marketing, as DraftKings has been doing. Given the cash burn rate above, DraftKings could use stock sales to fund further growth as more states open up sports betting and iGaming.
Confidence in DraftKings is key
Investor confidence in a company like DraftKings is key for the company long-term, because it allows management to grow and acquire competitors without having to worry about being profitable or cash-flow positive. The stock can be a piggy bank to be used when needed.
DraftKings is on a slippery slope
Despite being a major player in online gambling in the U.S., DraftKings needs to perform flawlessly and keep investor confidence to reach its potential. After the Entain offer, we're starting to see some cracks in the company's acquisition strategy and the stock is falling as a result.
