Last Updated on 23/09/2022
Fact checked by: Mark Lewis
The stock market has been fairly hard hit lately. Most stocks are down. One type of stock, however, has been on the rise. What stocks you may ask? Online gambling stocks are the answer.
DraftKings was one of the stocks that recently went public. The company itself estimated that it would raise $3.3 billion with its initial public offering. Instead, they actually raised north of $7 billion. Shares were trading at $24 bucks each last week.
Meanwhile, FanDuel‘s platform provider GAN also moved from its London listing to the Nasdaq this week and enjoyed a similar rise in value. The firm is now trading at nearly $14 a share, easily surpassing its projected IPO range of $6.50-$8.50.
This shows a huge amount of investor confidence in online gambling. When stocks start trading at much more than the company owners think they are worth, they send a message out about their true value. People are not overpaying for stocks. They instead are assessing their real value.
That means that the people with the money see real long term growth about online gambling stocks. They have realized that consumers in America have a deep love of gambling online and are likely to keep doing so.
In those situations, stocks are set to keep rising. Investing in the stocks should deliver real shareholder value to the people who own them. This should cause other investors to take a close look at other online gambling companies as they begin to launch their own IPOs. And we expect those IPOs to have similar above expectation market caps in the future.
While most stocks are tanking due to the coronavirus, online gambling sites are where people are parking their money. That's good for the online gambling industry. It shows a general trust in the industry that is very welcome.
Just five or six years ago online gambling was looked at askance in the financial markets. Today it's clear that it is the industry that investors are flocking too. This makes us proud.