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2 Stocks Down More Than 50% Over The Past Year With Serious Rebound Potential
Some stocks have been beaten down heavily in recent months, but which ones could be good bets for a big bounce back?
Recent volatility in the stock market have driven some stocks down to extreme lows. There’s no telling when the current correction will hit a bottom, but investors interested in trying to find companies they think are oversold could have prime opportunities if they pick the right ones for a rebound. These two stocks, which are trading at less than 50% of their high price from the past year, deserve strong consideration from investors.
DraftKings Inc. (DKNG): The online gaming company has grown rapidly over the past couple of years since becoming a publicly traded company by way of a SPAC reverse merger. Founded in 2012, they got their start in gaming with fantasy sports, starting with baseball. Since become they have become much more and are on the precipice of breaking out in many new and exciting ways. In addition to fantasy sports, they also offer online gambling and have recently rolled out the DraftKings Marketplace to sell sports-related NFTs (non-fungible tokens).
Online gambling is a major part of DraftKings’ future. As more and more States legalize it, the company has been doing yeoman’s work to ensure they are front and center in providing such services once betting goes live. They are currently live in 17 States with more than a half dozen on deck and in the process of going through legalization.
To ensure they have a healthy presence in these locations, DraftKings has spent heavily in marketing and acquisitions to build a strong and loyal customer base. The more than $700 million they spent on such initiatives in the first three quarters of 2021 may not look great on the balance sheet but they are hoping will come back in spades in the long run.
Currently trading at $20.75 per share, DraftKings is a far cry from their 52-week high of $74.38. The copious amount of funds that have gone out are still working for them as an investment in their future. If they continue to be legalized in more States and can show they are pulling in good customer numbers and strong revenue, the present time may be…
