One of the best weekends of the year has arrived. Week 1 of the NFL season is kicking off. With that comes the craze that is fantasy football and people wagering on their favorite teams. Yes for those wondering, I did put some money down on my beloved Buffalo Bills to win the Super Bowl and Josh Allen to win MVP.
Leading up to the start of the NFL season I have been buying shares of DraftKings (DKNG). I originally entered this stock a little over a year ago around $30 a share. I’ve continued to buy more on dips along the way. But over the past few weeks I did start to average up in my cost basis.
The NFL season is where DraftKings thrives. When people talk about fantasy football or sports gambling, DraftKings is the name they say. This last week I was talking to a few friends who are football fans. The one and only company name they kept saying whenever they talked daily fantasy football or wagering on games, was DraftKings.
Here are five points about DraftKings.
They have the first mover advantage. It’s the most recognized and talked about name in this space.
DraftKings has become a verb. Whenever people talk about daily fantasy football or sports gambling they say DraftKings or DK. It’s become like Uber when talking of ride sharing, or Google when talking about search.
It’s a staple in the fantasy football circles and on fantasy sports radio. Everything is DraftKings. Even outside of football season, it’s used for all sports. You cannot watch a sporting event or go on many websites right now and not see DraftKings advertising.
I’ve used it multiple years for daily fantasy football. The technology and app interface has one of the best and cleanest platforms of any apps that I use. I’m a huge believer in buying what you know, like and use.
It has a very small market cap ($25 billion) yet relative to other technology companies. As more states allow online gambling this company will just continue to grow.
DraftKings has been one of my strongest long term conviction buys. Any dips or selloffs this is one of the first stocks I will look to add to.
Adding to my DraftKings position has been the only move that I’ve made of late. With the market still setting new highs seemingly daily, I have mostly been a spectator. Outside of keeping a close eye on Shopify (SHOP) like I mentioned in my last investing update. I have nothing else in my crosshairs as of today. Clearly that can change in an instant. For now, I’m fully invested and staying long the market.
Last and more importantly, Go Bills!
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Disclaimer: This is not investment advice. You should not treat any opinion expressed as a specific inducement to make a particular purchase, investment or follow a particular strategy, but only as an expression of an opinion.