DraftKings surges after announcing live sports streaming (despite current lack of live sports)
Tuning into Russian ping-pong... DraftKings took its fantasy sports app public juuust over a month ago. The sports betting company's stock has soared 85% since, even though live sports aren't happening right now (though ESPN did stream a spelling bee). Yesterday, DraftKings announced it'll start live-streaming sports events through its app. Despite the current state of live sports (almost none), investors are optimistic:
- Unity is key: Live streaming in-app could significantly increase DraftKings' user engagement, in terms of both time and money spent in-app.
- Live sports are (kinda) returning: The MLB is on pace to restart sooner than planned, and the NHL and NBA are looking to resume playoffs sometimes this summer. But...
Live sports might be very different... DraftKings' push into streaming was pretty timely. We could be remote-watching big games played in empty stadiums for a while. Sports teams and stadiums will lose out big on missed ticket revenues, but sports betting probably won't change too much.
DraftKings might be getting help from the corona-restless... Sports fans may be looking for ways to feel more engaged in games, now that the electric excitment and sound of a packed stadium is gone. Couple that with non-existent public social events, and it's not hard to see how couch-bound boredom could give DraftKings a boost. FYI, gaming peer Penn National is up 76% for the month.