Profit Pregame

This Could Be Your Last Chance to Secure This Stock Before the Boom

Sports Gambling Could Be the Fall’s Hottest Industry

Another big deal in the gaming world could mean huge things for my favorite stock in the space.

What’s happening?

We’ve been talking a lot about the sports gambling industry over the last few weeks here at Profit Pregame.

It’s no wonder why, when you consider the projection that the sports gambling market in the U.S. could generate as much as $1.3 billion in 2021 – the second year in a row with record revenue. By 2023, that figure could grow to as much as $6 billion, according to current estimates, as more states change legislation to allow sportsbooks to operate.

Just last week, I highlighted the big move by Penn National Gaming, Inc. (PENN) to acquire Score Media and Gaming Inc. (SCR) in its bid to secure market share ahead of the expected boom in sports gambling.

Not to be outdone, my favorite name in the space made a huge acquisition deal of its own this week – making it one of the biggest stocks to watch in a surging business.

So, if you haven’t taken my advice on this company yet, I’m going to reiterate it one last time. You’ve still got chance to get in on this stock before a major catalyst occurs – but it likely won’t last long.

Where’s the money?

Yesterday, DraftKings Inc. (DKNG) announced that it had reached a deal to acquire fellow gambling firm Golden Nugget Online Gaming, Inc. (GNOG).

The $1.56 cash and stock deal – the latest of several moves in the sports gambling world as U.S. firms vie for the top spot in the growing industry – is expected to close in the first quarter of 2022.

DraftKings said it plans to utilize Golden Nugget’s online gaming experience to better serve customers, as well as its database of more than 5 million customers in an effort to expand its user base.

But the latest merger news isn’t all DKNG has going for it.

In its Q2 earnings report last Friday, DraftKings revealed it had raked in $298 million in revenue, which was significantly more than the second quarter a year ago.

The company also raised its guidance on revenue for the year from $1.05 billion to as much as $1.29 billion.

And those figures don’t even take into account a gargantuan potential source of revenue that could be just over the horizon.

No, I’m not just talking about the start of the NFL season.

It’s much bigger than that.

How do I get some?

According to DraftKings CEO Jason Robins, the company’s improved revenue outlook does not include several large states that are close to passing legislation which would allow sports gambling.

Arizona, Connecticut, New York, Louisiana, Maryland, and Wyoming are all currently considering law changes which would allow sportsbooks to expand into their states.

Those states alone make up roughly 13% of the U.S. population, so even if just a few of them pass sports gambling laws, the result could be massive for the top companies in the business.

It’s clear to see that DraftKings is a stock with a ton of momentum, and investors have begun to see the writing on the wall. Since mid-July, DKNG has gained more than 21% as investors have piled in.

I believe DKNG has more room to run to the upside with all of the positive catalysts in the future, but the time to buy is now. This price level won’t be staying where it is for long.

In the Spotlight: The race for 5G dominance heats up…

The rollout of nationwide 5G networks is sure to be a huge source of revenue for wireless providers – not just for new 5G capable phone sales, but also the enhanced service that comes with it.

And as the top wireless providers duke it out to earn the most 5G business, the picture got a little more cloudy this week.

T-Mobile US, Inc. (TMUS), one of the front-runners in the heated 5G competition, reported it latest earnings recently. And while revenue topped analysts’ estimates, there was one alarming figure that concerned investors.

Rival wireless provider AT&T Inc. (T) actually outshined TMUS in a crucial category.

In the race to gobble up as much 5G market share as possible, AT&T added 789,000 subscribers in Q2 2021, while TMUS reported just 627,000 users.

Many are crediting AT&T’s promotions and free 5G phone offer for their success in attracting customers this year. With mobile service contracts often being costly to get out of before the typical 2-year term is up, the big swing in customers has TMUS investors worried.

But if you were looking for profits from 5G stocks, there’s a better way to play it than buying a mobile provider and hoping it comes out on top…

The Dirty Truth about 5G

Most people searching for “best 5G stocks to buy” will end up investing in AT&T, T-Mobile, or Verizon.

And they’ll be in for a rude awakening, because profits from investing in 5G directly are almost completely dried up.

Instead, tech expert Michael Robinson is urging everyone to focus on the $1.4 trillion aftershock effect that 5G will create – and the 20 companies that he has identified.

Each is projected to return 10X by the end of the year and could dwarf the 5G gains we’ve seen already.

This “backdoor” route could be your best bet to profit from 5G.

Get the details here.

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