Why DraftKings Stock is So Hot

2020 is a great year for DraftKings (NASDAQ:DKNG). Not only did the stock rise by almost five-fold from yearly lows but the firm won major contracts in the last week.

On Sep. 14, the firm signed an exclusive deal with Disney’s (NYSE:DIS) ESPN network. The content integration agreement for multiple years will link the ESPN digital platform to connect viewers to DraftKing’s products and services. CEO Jason Robins said, "ESPN helped revolutionize the 24/7 sports news cycle and continues to be the go-to source for many fans today on the latest and largest sports stories.”

For years, ESPN underperformed and lost viewers. Linking the online betting site may help retain the existing viewership.

On Sep. 16, the firm signed a multi-year exclusive agreement. DraftKings will have access to official giants marks and logos. It will also open a virtual Sportslounge on Giants’ game days.

Football is the most popular sport for DKNG users. The increased engagement benefits both the NFL and this football team. As a win-win deal, DKNG stock has the potential to continue its uptrend.

DKNG spent billions in marketing in the last few months. So, as it takes more market share in the IGaming segment, especially in the U.S., shareholders should continue holding the stock. Chances are good that investors who missed out on the initial run-up will build a position in the stock.