Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Hall of Fame Resort & Entertainment Are Falling Today

By Bram Berkowitz - Mar 30, 2021 at 11:07AM

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

The company announced a new kind of NFL fantasy league, and is also still volatile from its recent announcement about jumping into the non-fungible token space.

What happened

Shares of Hall of Fame Resort & Entertainment (HOFV -2.14%) traded more than 10% lower as of 10:45 a.m. EDT after the company announced a new kind of fantasy sports league. The company also continues to be volatile from its announcement last week about jumping into the non-fungible token (NFT) space.

So what

Hall of Fame Resort & Entertainment is a company that seeks to create football-themed resort and entertainment experiences. Shares of the company have spiked recently after it announced it would begin offering NFTs.

NFTs are digital files such as art, video, audio, and other files stored on blockchain, which is the digital ledger technology that powers cryptocurrencies like Bitcoin. Some NFTs have already sold for millions of dollars.

A red descending stock arrow on a blue digital background.

Image source: Getty Images.

This morning, the company announced its new Hall Of Fantasy League (HOFL), a first of its kind in fantasy sports that will enable users to be stakeholders in national fantasy teams.

In the HOFL, users will be able to purchase stakes in one of 10 fantasy teams that are managed by fantasy experts. In return, users will also earn a percentage of the winnings if their fantasy team triumphs. Fans will also be able to buy and sell NFTs associated with the HOFL's unique gameplay, content, and talent.

Now what

As I wrote yesterday, I do think Hall of Fame Resort & Entertainment is doing some cool things with this new fantasy format, and its foray into NFTs.

NBA Top Shot, a platform that allows fans to buy and sell NBA NFT highlights, has seen $500 million worth of transactions exchanged through its platform.

But the stock has been so volatile lately -- jumping 80% last week on news the company would begin offering NFTs -- that it simply may be taking a breather today. Also, with NFTs such a new asset class and the market so uncertain, I'd definitely trade with caution.

 

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

Hall of Fame Resort & Entertainment Company Stock Quote
Hall of Fame Resort & Entertainment Company
HOFV
$0.63 (-2.14%) $0.01
Bitcoin Stock Quote
Bitcoin
BTC
$29,679.39 (-0.91%) $-274.03

*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
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

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.