DraftKings Play the NFT Card

Aug 15, 2021 | Are there any swing trading opportunities in retail?

DraftKings Looks to Capitalize on NFT Craze 

DraftKings (DK), one of the premier leaders in the sports betting industry, recently unveiled their brand-new NFT Marketplace. DraftKings sportsbook will now allow its users to purchase NFTs for some of the biggest and most notable names around the National Football League with its new marketplace features. This is a huge move for DraftKings, and it demonstrates a sign of DK’s desire to expand and grow with emerging technologies. NFT's are still incredibly new, and much like the rest of cryptocurrency, most of the general population is still pretty clueless about them. 

What are NFTs? 

NFT stands for Non-Fungible Tokens. They’re digital tokens, much like Bitcoin or Ethereum. We have discussed them in-depth on our social media pages if you want a more detailed deep dive. But in short, NFTs are considered digital artwork and can be utilized through the Ethereum blockchain network. At its core, NFTs allow a person to own or authenticate original pieces of digital property. In the sports world, the first huge NFT splash was made with the emergence of the NBA Top Shot, which allowed for the purchase and sale of digital NBA collectible assets. 

Athlete’s Love NFTs 

You’ve probably already heard about at least a couple of high-profile NFT purchases. Just a few short months ago, Chiefs Quarterback Patrick Maholmes sold a piece of digital art for over $247,000! These were considered part of the 6-piece collection, which was sold for a total of over $3.4M. These were sold just days after famed NFL tight end Rob Gronkowski sold over $2 million of his own digital assets.

What’s it all Mean? 

Going forward, DK will be dropping NFTs at predetermined times and dates. Advanced notification will be available through the DK Casino app. Users will be able to join virtual waiting rooms that will assign you a number in line, to eventually bid on and purchase an officially licensed NFT from the NFL. DraftKings is hoping you'll want to utilize their casino, bet on sports, and then purchase authenticate sports items, all from the same location. This is a big bet for DK, but one that appears to be paying dividends. Wall Street seemed to love the move, with the stock rallying over 4% this week. With the start of the NFL season right around the corner, DK has picked a perfect time to try and benefit from the growing NFT craze. We'll be watching to see what other industries try to profit from further adoption of Cryptocurrency. 

Weekly Swing Trades

PNRG (Prime Energy)

October 2, 2022

Entry Price:

80.62

Stop Price:

76.85

Target Price:

88.04

Time Frame:

1 Week Hold

Expecting a short-term bump after a recent OPEC+ announcement regarding the a supply constraint to oil. The constraint would result in ~1M less barrels of oil per day, which should cause a price jump. Low RSI and bouncing off our 250 day moving average, both hallmarks of a good swing trade.

DV (Doubleverify)

October 2, 2022

Entry Price:

27.75

Stop Price:

26.75

Target Price:

29.00

Time Frame:

3 Week Hold

Using our moving averages heavily on this swing trade, look for continued strength as we try to notch out a 6-8% gain. Specifically, we are taking advantage of of a recent cross over in the 50 day moving average. Last week closed down, so wait for confirmation of a reversal.

Disney+ Continues to Hold up the House of Mouse 

Disney reported earnings this week, and it was one of the most anticipated reports of the week. As we know, the IP of the Disney umbrella covers movies, TVs, toys, cruises, theme parks, and much, much more. Many of Disney's key revenue drivers have been closed or limited over the last 12 months, but as the parks reopen and cruises start hitting the sea again, we were all curious to see how the business is currently performing. Disney stock has risen over 120% since its March 2020 pandemic lows, fueled almost exclusively by the rise of their streaming platform Disney+. 

Disney+ Continues to take Netflix Market Share 

When the market crashed in 2020, Disney was hit especially hard. As we noted, a lot of Disney's key revenue drivers come from in-person experiences, and with theme parks closed, investors were unsure how Disney would continue to generate revenue. In an increasingly crowded world of streaming, Disney has cemented itself as the clear #2 in the space, only behind Netflix. As Disney stock has fought to find relevancy during the stay-at-home economy, the stock has reached new highs on the back of its streaming platform and its growing number of subscribers. With its recent earnings report, we learned Disney+ subscriber growth once again topped estimates. They currently have over 116 million paid subscribers. Additionally, much like Netflix, Disney has plans to expand their libraries internationally, with expansions into Japan and Latin America also planned. With movie theaters making a slight return, the media division jumped 18%, but it was theme parks that quadrupled sales from a shutdown filled 2020. With such an extensive list of IP and characters and IP under the Disney umbrella, D+ has no shortages of available content. Disney stock is up 40% over the last year, while Netflix has slumped to a 7% gain. 

Infrastructure Bill Continues to Light-Up EV Sales 

We previously posted an article about the rise of Electric Vehicles (EVs) which can be found here. In that article, we cited how President Biden’s agenda could end up being a huge boost, to the long-term growth of EVs. Last week, EVs received another upgrade as Biden has stated he would like EVs to make up 50% of US annual car sales by 2030. Several EV car makers made big jumps in response to this news. The infrastructure bill also has provisions that include the funding, creation, and distribution of more EV charging stations around the country. As the president continues to focus on zero emissions and the impact of fuel on the economy, this should add even more to the bullish case for EVs. 

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Weekly Watchlists

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Weekly Review

Market Performance- Week of 09.25.2022

Recent Winners

SBUX (Starbucks)

SBUX (Starbucks)

Entry Price:

85.00

September 11, 2022

Price at High:

89.90

Return for Members:

5.76%

Timeline:

2 Month Hold

Strong momentum over the last few weeks. Watch for a mean reversion, but if moving averages stay consistent look for an early play to open the week.

PNRG (Prime Energy Resources)

PNRG (Prime Energy Resources)

Entry Price:

83.20

September 4, 2022

Price at High:

100.00

Return for Members:

20.19%

Timeline:

3 Week Hold

PNRG had a drawdown to historical levels of support (around the 100 day moving average). Looking to make an entry in the coming days as we also have macro tailwinds with the energy crisis in Europe.

PYPL (Paypal)

PYPL (Paypal)

Entry Price:

87.00

August 28, 2022

Price at High:

103.00

Return for Members:

18.39%

Timeline:

4 Week Hold

Playing off the dip in June, we're starting to see momentum as the 50MA is crossing over the long-term averages. Look to for momentum to continue and an early entry on Monday.

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