Seems like a long time ago that digital sports and gaming entertainment company kings (NASDAQ:DKNG) was loved by the markets. Today, however, selling pressure with DKNG shares is outweighing buying pressure.
So, should potential investors consider Draft King to be an underappreciated gem, or a toxic company? It all depends on your tolerance for risk, as well as your outlook on the NFT token industry.
Additionally, DKNG shareholders must be willing to accept DraftKings’ changing business model. Sure, DraftKings is still an eSports/electronic gaming company, but it is now evolving into ‘built worlds’ from the metaverse.
If you don’t agree, DraftKings will likely not appeal to you in 2022. However, I would encourage you to embrace the trend of NFT rather than try to resist it – and it is clear that DraftKings is looking to make its mark in this potentially lucrative niche market.
A closer look at DKNG stock
A year ago, DNKG stock was a “momo” or momentum stock. Some people had also called it a growth stock, as the stock price was definitely growing fast.
It peaked at $74.38 in March of 2021, providing multi-bag returns for early investors in DraftKings. But in hindsight, it is clear that gatherings of this size are difficult to maintain.
Unfortunately, DKNG stock has been on the decline since September. The stock was trading near $25 unimaginable, but here we go.
At this point – and given the technical devastation over the past several months – it’s not realistic to expect DraftKings’ stock price to return to $70 anytime soon.
Benchmark analyst Mike Hickey has issued a target price of $50 per share. This price level should be possible in 2022, assuming the selling pressure subsides at some point.
In our recent investor presentation from DraftKing, it’s clear that this is a company in transition.
The shift towards the metaverse and NFT industry is undeniable. The company has announced the success of the first roles of the DraftKings Marketplace – and NFTs will undoubtedly continue to roll out this technology-enhanced platform.
Of course, there is often a mathematical connection here. For example, the DraftKings Marketplace was launched by dropping the premium version Tom Brady NFTs, offered by his signature.
However, it is not just about sports. Autograph collaborated with LionsgateAnd crooked pictures The DraftKings to release a saw Film NFTs on the market.
These were the first non-sports digital collectibles on the DraftKings platform – and a saw NFTs were sold out within minutes. These may really be the early roles, as DraftKings is considering the possibility of releasing their own NFTs in the future.
Gamified NFT تعاون Collaboration
In addition, DraftKings plans to work with a pair of partners to help combine the excitement of football with the technology-enhanced metaverse. Reportedly, DraftKings is partnering with NFL Players Association And OneTeam Partners To release beloved NFT kits.
These kits will debut on the DraftKings Market during the 2022-2023 NFL season. For this purpose, DraftKings will have the licensing rights to active NFL players, including the authentic use of names, images, and likenesses.
Sean C. Sanseveri, general counsel and chief business officer for NFL Players Inc. , the marketing and licensing arm of the NFL Players Association, is given this opportunity to bring together the sport and the emerging metaverse.
“We look forward to integrating NFL players into the DraftKings NFT experience to create true connections for passionate fans,” Sanseveri said.
Day traders should be realistic about DNKG stock. It is not likely to return to its previous peak any time soon.
However, a price target in the $50 range is out of the question. After all, DraftKings is expanding its business model, and this can enhance the company’s value proposition.
So, if you’re involved with the ambitious DraftKings venture into the NFTs and metaverse, feel free to consider a position in equity shares.
Posted in David Muadl He did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.
David Moadel provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga and (of course) InvestorPlace.com. He is also a Senior Analyst and Market Researcher at Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.