Top Super Bowl stocks to buy: DKNG, GENI, FLUT

The Super Bowl, the biggest sporting event in the US, is nearing, leading to a frenzy among fans and investors. The event, which will take place in Las Vegas, is expected to be one of the biggest ones in terms of attendance and viewership. Investors are also cheering some of the top companies that tend to thrive ahead of this event. Here are some of the top Super Bowl stocks to buy.

DraftKings vs Genius Sports vs Flutter Entertainment

DraftKings

DraftKings (DKNG) is one of the biggest beneficiaries of Super Bowl because of the number of people who use its platform to place bets. A closer look at its historical performance shows that the DKNG stock tends to rise ahead of the Super Bowl event. 

For example, it has already jumped by 13% in 2023. It also doubled from its December low to its highest point in December 2023. Going back, the stock jumped by over 42% in January and February 2021.

This trend is usually based on sentimental value and the hype surrounding the Super Bowl event. However, a look at the charts also shows that DraftKings stock tends to decline after it happens. This is known as buying the rumours and selling the news. This means that investors could buy the stock and then start paring back their holdings before February 11th, when the Super Bowl will happen.

Some analysts are concerned about DraftKing’s valuation now that its stock has surged by 172% in the past 12 months. Critics argue that, while the company is growing, it is about to get to a position where growth stalls. Besides, DraftKings is still losing billions of dollars. Its net loss in the past four quarters stood at over $1 billion.

Flutter Entertainment

Flutter Entertainment (FLUT) is another Super Bowl stock to consider. While this Irish company is not known by most Americans, many of them know some of its portfolio companies. It owns FanDuel, a company that competes with DraftKings.

Flutter Entertainment became a publicly traded company in the US on Monday. And FT reported that it is considering changing its primary listing from London to New York in another loss for the LSE.

I suspect that the Flutter Entertainment stock price will track the performance of DraftKings, where it rises before the event and then pulls back after that. Flutter stock price has already surged by more than 35% from its lowest point in December.

Genius Sports

Genius Sports (GENI) is another Super Bowl stock that could benefit ahead of the event. The shares have already jumped by over 45% from its lowest point in December and is hovering at its highest point since August last year.

Genius Sports is a company that provides its solutions to sports betting firms, media companies, and other companies in the industry. Its key solutions are video, media and fan engagement, sportsbook, and sportech. 

Genius Sports operates as a duopoly with another company known as Sportsradar. The two have signed deals with the most leagues in the world and then they sell the data that they collect. Genius Sports has been growing rapidly, as evidenced by its last quarter. Its quarterly revenue jumped to $101.7 million in the third quarter from $78.7 million in the previous quarter. And analysts expect the company will report earnings of $125 million in its next report.