It's never been easier to get into the game than it is right now. Even if you don't command pro-level athletic skills, there are plenty of ways to cash in on the popularity of sports by investing in the companies that are growing quickly on the Wall Street playing field.
DraftKings (NASDAQ:DKNG), fuboTV (NYSE:FUBO), and NVIDIA (NASDAQ:NVDA) are three stocks that can help you get into the game. They don't own teams or stadiums, but they have a firm grasp on sports fans -- and that's where the real money is being made these days.
All three companies are posting hearty double-digit growth in this otherwise rocky climate. Let's hit the field to show you why these three stocks belong in your starting lineup.
Fantasy sports is a big business these days, and DraftKings is cashing in as royalty in this booming niche. It's the leader in real-money wagering on fantasy sports, but if you prefer more traditional gambling, DraftKings has also emerged as a major player here, too, with its online sportsbook business.
Revenue rose 42% on a pro forma basis in its latest quarter, and DraftKings has seen its wagering audience soar by 64% over the past year. There are now more than 1 million monthly unique paying customers on the platform.
The future is even brighter. DraftKings boosted its full-year guidance for 2020, and it sees its top line rising between 34% and 57% next year. DraftKings is striking partnerships with leading sports-viewing outlets, giving it the inside track to make the most of future bets on fantasy sports, as well as the games themselves.
ESPN used to be the ultimate premium package for diehard sports fans, but right now, fuboTV is wearing the crown. FuboTV is the first sports-first streaming service, carrying most of the regional and premium sporting events as part of a full-features package of digital content. Armchair quarterbacks will also appreciate that it's the only live-TV platform streaming available games in 4K resolution.
Adjusted revenue soared 71% in its latest quarter. We're seeing the subscriber base grow, up 58% to 455,000 premium accounts over the past year. These sports buffs are also willing to pay more for a broader range of programming, as average revenue per user has increased 14% over the past year to $67.70 a month.
Consumers are flocking to streaming-TV platforms, and while Sling TV, YouTube TV, and Hulu's Live TV have a decent range of sports content, fuboTV is going to continue to be the service of choice for cord-cutters who also happen to be sport enthusiasts. This is fuboTV's time to shine, and it's not a surprise that we've seen its guidance for year-end subscribers shoot higher through the second half of this year.
Some sports fans may cringe at considering video gaming as an athletic endeavor, but there's no denying that e-sports -- watching skilled gamers excel at their competitive craft -- is growing faster than the sports market itself. Gaming-market intelligence specialist Newzoo sees this as a $950.3 million market this year, hitting nearly $1.6 billion by 2023.
You can put your money on the software developers, console makers, and e-sports streaming platforms, but it's smarter to buy more than just individual eggs in this basket. NVIDIA is the leading maker of graphics cards. Its GeForce products help PC players optimize latency to give them a competitive advantage in reacting faster to the playing field. The company also offers broadcasting tools and cloud-gaming solutions to make it easier to stand out in this rapidly growing market.
NVIDIA does a lot more than just give gamers an edge. It's playing a starring role in data centers, artificial intelligence, and autonomous driving. Revenue skyrocketed 57% in its latest quarter with adjusted earnings growing even faster.
Are you watching this game? We're in a pandemic. We're in a recession. DraftKings, fuboTV, and NVIDIA still found a way to post at least 42% year-over-year revenue growth in their most recent quarter. Play to win because it's the only reason to play this market.