Please ensure Javascript is enabled for purposes of website accessibility

These 2 Nasdaq Winners Were Smart Bets Tuesday

By Dan Caplinger - Updated Mar 30, 2021 at 2:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Find out which stocks are defying the Nasdaq's downturn.

The stock market sank on Tuesday, and even the Nasdaq Composite (^IXIC 0.83%) wasn't able to avoid the downturn. As of 1:45 p.m. EDT today, the Nasdaq was down about a quarter-percent, which was roughly in line with how the remainder of the stock market performed. Investors remain nervous about many of the uncertainties that have been on their minds for months, including the sluggish progress on vaccine rollouts and the prospects for an economic rebound in 2021.

Yet even as the broader Nasdaq was moving lower, a couple of stocks got some positive attention from Wall Street on Tuesday. Sports betting disruptor DraftKings (DKNG -0.57%) made a strategic move that lifted its prospects for future growth, while Marathon Digital Holdings (MARA 1.02%) surged on a strong day for the cryptocurrency market.

Making a media bet

Shares of DraftKings were up more than 3% on Tuesday afternoon. The specialist in sports betting and fantasy sports contests made a move that should help it build credibility with devoted gamblers while also raising its exposure.

Two hands pushing piles of poker chips forward.

Image source: Getty Images.

DraftKings announced that it will purchase the Vegas Sports Information Network, or VSiN for short. VSiN is a sports-betting broadcast and content company with popular television and radio shows that help gambling fans get the information they need to make informed sports bets.

DraftKings CEO Jason Robins noted that the VSiN acquisition should help the sports-betting platform provider get more people the information they need to feel comfortable making bets. Moreover, as sports betting is legalized in more states across the U.S., DraftKings sees the potential for expanding VSiN's reach as well, and bolstering growth plans for both businesses.

The move only amplifies DraftKings' ambitious strategy of moving in as many different directions as possible as it expands. Even as the pandemic comes under control, DraftKings is optimistic that the following of fans it developed during lockdowns will remain loyal throughout 2021 and beyond.

Crypto highs push Marathon up

Elsewhere, shares of Marathon Digital Holdings moved higher by 12%. The stock didn't quite make new all-time highs, but it remains more than 100 times more valuable than it was as recently as last April.

Marathon changed its name from Marathon Patent Group as of the beginning of March, in order to reflect the new emphasis of its business model. The company has invested in a huge amount of cryptocurrency mining equipment, with the goal of taking advantage of higher prices for many of the most popular crypto tokens by mining them itself.

Marathon's stock price has tended to move in lockstep with crypto prices, but some investors were concerned when they saw that Marathon's revenue in its most recent quarter was quite a bit lower than they'd hoped to see at just $2.6 million. Some of that has to do with the fact that Marathon doesn't report revenue until it actually sells its crypto, but even after two and a half months of mining activity in 2021, the company reported holding just over $14 million in digital currencies.

Even as crypto prices rise, the difficulty level of mining digital currencies climbs along with them. That means that no matter how high cryptocurrencies go, there's no guarantee that Marathon or any other cryptocurrency mining specialist will be able to turn a consistent profit. Nevertheless, investors still seem to like Marathon more when prices gain ground, and that was definitely the case on Tuesday.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

DraftKings Inc. Stock Quote
DraftKings Inc.
$13.95 (-0.57%) $0.08
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
$11,449.17 (0.83%) $94.63
Marathon Patent Group, Inc. Stock Quote
Marathon Patent Group, Inc.
$9.87 (1.02%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.