GNOG stock is down 23% in the last five days. This is a great time to buy. GNOG is projected to drop 35% in 2021. If you’ve been holding off buying this stock, now is the time to buy. In this article, you’ll learn why now is the right time to buy.
GNOG stock is down 23% in the past five days
The company has been under pressure lately. Despite the strong branding, it has a low share price and is down more than 23% in the past five days. Its business model is based on sports betting, which is expected to grow by more than $9 billion by 2023. The company’s brand name is one of the strongest in the industry, and it has a fan base on Reddit. It also has a strong live dealer platform. However, it’s still unclear whether this new acquisition will be a good fit for investors.
The news that DraftKings is buying Golden Nugget Online Gaming (GNOG) is encouraging for investors. This acquisition will combine the strengths and weaknesses of the two companies. Both DraftKings and Golden Nugget Online Gaming are based in the US. The deal is expected to close in the first quarter of 2022. The combined company will offer customers the best of both worlds, including online sports betting and online casino games.
The deal to acquire Golden Nugget Online Gaming (GNOG) is contingent upon shareholder approval. However, DraftKings’ board of directors has already approved the deal and the company expects it to close the deal in the first quarter of 2022. The company’s CEO Jason Robins said the transaction “checks a lot of strategic boxes” for the company’s iGaming expansion strategy. Robins also praised DraftKings for its success in the sports betting industry, and claimed GNOG’s success in attracting new customers will help the company achieve even more success.
GNOG stock is a good time to buy
Golden Nugget Online Gaming (GNOG) is an online casino that is making a lot of money. It has a strong brand name, and it has a good price. The stock has a target price of $27, which implies a 76 percent upside. Benchmark analyst Mike Hickey initiated coverage on the stock on Jan. 13. He thinks GNOG has a leading position in mobile online casinos and an early position in online sports betting.
GNOG stock is a good time for investors to get in. The company is already profitable, with an operating margin of around 25 percent, and the company is expanding into new markets. Its management team is experienced and has launched some new, innovative games. It also has a solid balance sheet and an impressive track record, having won the Operator of the Year award four years in a row at the EGR North America Virtual Awards 2020.
Another reason GNOG stock is a good time for investors is that the company has announced plans to merge with New DraftKings. The deal will give GNOG shareholders cash instead of fractional shares of the New DraftKings Class A Common Stock. The new company is expected to be listed on The Nasdaq Global Select Market under the ticker symbol DKNG.
While SPAC may be good news for GNOG stock, it could also be bad news for the company. In November, three states legalized sports betting, making it legal in almost half the country. In addition, sports betting is a part of the global online gambling market, which is expected to grow to $92.9 billion by 2023.
GNOG stock is down 35% in 2021
Investors are worried about the stock’s continued decline. While Golden Nugget stock has spiked in price at the end of 2020, it has since fallen dramatically and has yet to recover from this blow. Investors fear missing out and being left holding the bag. While this is a real concern, we still think GNOG stocks are an excellent investment and are worth considering for those who are looking for an online gambling stock.
There are two reasons for the GNOG stock’s decline. First, GNOG recently announced a merger deal with DraftKings, and the two companies have decided to combine their online gaming businesses. Once the merger is final, GNOG stock will cease trading. Second, the merger is expected to create a company with over 5 million users.
Despite this merger, the company’s results were mixed, and the two-way deal between Golden Nugget Online Gaming and DraftKings has raised questions about its future direction. While the company has a $2.6 billion cash position, the operating losses continue to mount. Also, its strategy of buying expensive businesses raises questions. The new owner of GNOG, transaction-minded billionaire Tillman Fertittittittitta, owns 46% of the company.