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4 Stocks I'm Watching This Week as Potential Buys

By Jose Najarro – Oct 13, 2021 at 11:00AM

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Can growth in the sports betting market push this company's stock price to new highs?

Today's video focuses on stock price action, valuation metrics, and recent news affecting Paysafe (PSFE -3.51%), DraftKings (DKNG -2.59%), Shopify (SHOP -5.77%), and Spotify (SPOT -2.19%). Here are some highlights from the video. 

  1. The stock prices for these four companies have fallen over double-digit percentage points from all-time highs, which could provide long-term investors the ability to dollar-cost average in these positions. Shopify has lost over 17%, DraftKings and Spotify have dropped by over 30%, and Paysafe is down by over 60%. 
  2. On Oct. 4, Paysafe announced that it would power online payments for the Montana Lottery's sportsbook. On Sept. 30, Paysafe announced a partnership with Fubo TV (FUBO -0.83%) to provide streaming payments for interactive wagering with Fubo Gaming in the U.S.
  3. Earnings season is coming back, and Spotify is expected to report on Oct. 27. Many investors will be looking at monthly active user growth, as there are worries that companies like Spotify will see a decrease in user growth. It is important to remember that numerous companies that depend on user growth saw strong returns in 2020 but are lagging in growth for 2021. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closed prices of Oct. 8, 2021. The video was published on Oct. 10, 2021.

Jose Najarro owns shares of DraftKings Inc., Paysafe Limited, Shopify, and Spotify Technology. The Motley Fool owns shares of and recommends Shopify, Spotify Technology, and fuboTV, Inc. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policyJose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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