Germany’s Bundesliga became the first major sports league to return to action following the global coronavirus pandemic, and the soccer games are in full swing. While sports fans wait for a possible return of the NBA and others, Bundesliga is filling a much-needed gap in the athletic void. DraftKings is ready to capitalize on the millions of viewers tuning into the games, and will now offer live-streamed coverage of many of the matches through a new partnership with the league.
DraftKings began streaming the games, which were played in empty stadiums, this past Saturday. The season is expected to last just another five weeks, more or less, which means users of the platforms have a lot of action to look forward to. Any DraftKings user with any amount of money in their account will be able to take advantage of the streaming action, provided they live in Colorado, Indiana, Iowa, New Hampshire, New Jersey, Pennsylvania or West Virginia.
The addition of the livestreams will certainly be a bonus for the sports gambling giant, which recently went live on NASDAQ. Although the sports world has been brought to its knees, the company’s initial public offering (IPO) has enjoyed tremendous success. Like all other companies linked to the sports world, DraftKings has seen its revenue plummet, but this hasn’t curbed investor interest. By continuing to cover topics like the NFL Draft, Ultimate Fighting Championship, table tennis and more, the company has shown that it’s able to remain strong in the face of adversity. This led the company’s CEO, Jason Robins, to say last week during an earnings call, “It’s been a huge growth area over the last couple months for us. I think what it shows you is there’s a lot of pent-up demand for sports. People are hungry for sports to come back.”
Even analysts have been extremely bullish about the company’s prospects, and several have published glowing reviews of what’s in store. There is always one that has to stand out from the rest to garner more attention, and this time, it comes from Goldman Sachs. An analyst for the financial company, Stephen Grambling, started providing coverage of DraftKings this week, late to the party in some respects, and isn’t as convinced as other analysts that the company is on track for overwhelming greatness.
Grambling initiated his coverage by giving DraftKings just a “neutral” rating, which he bases simply on the valuation of the company. He feels that, despite a 68% increase in its stock since the NASDAQ listing, DraftKings deserves to be put in check, but agrees that the long-term potential is there. Grambling adds, “We believe both sports betting and iGaming are poised to see accelerated consumer adoption in response to COVID-19 and subsequent social distancing protocols across sports and gaming. However, we believe valuation is largely reflective of these unique growth opportunities.”