August 9th: DraftKings (DKNG stock): Is it a buy? - YouTube

[Greeting]

>> Hoda: Hey fellow Stock Cardians.

Happy Monday, August 9th, 2021.

I'm Hoda, Stock Card's CEO, reporting to you from a mixed stock market.

Today, I covered the falling oil prices and its effect on the market indices.

I also looked into Draftkings (DKNG) and its plans to purchase

Golden Nugget Online Gaming (GNOG).

Finally, I dug into Axsome Therapeutics's (AXSM) 45% price dip today.

Let’s get right into it!

[Overall Market]

>> Hoda: The market indices ended the day mixed.

The S&P 500 and the DOW Jones indices both took a dip into the red by the end of the

day, while the NASDAQ index began the week with

some gains.

This tough start to the week is partly due to oil prices slipping more than

2% over the course of the day.

This was evident by the West Texas Intermediate price.

In addition to oil prices, the COVID delta variant continues to trouble the

world economy and investors sentiment is impacted by it.

[Get The Daily Market Recap]

>> Hoda: Before we dive into the winners and losers, let me thank you for being a Stock

Cardian.

Our team at Stock Card appreciates you watching, listening to,

and reading the Daily Roll episodes.

And more importantly, we thank you for using Stock Card platform in your research.

Thank you for being a Stock Cardian!

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First, hit the like button, subscribe to the show,

and then create a free account on StockCard.io.

Thanks for becoming a new Stock Cardian!

[What's Up?]

>> Hoda: On top of the winners list on Stock Card, Golden Nugget Online Gaming (GNOG)

stock is up 50% today after announcing that it was being bought by DraftKings (DKNG).

It seems the Golden Nugget's acquisition is a good deal for DraftKings due to its

5 million users on its online gaming market,

which includes online casinos and sports betting.

Gambling, and more recently sports betting in the United States has been on the rise

for years.

The pandemic brought gambling revenue to its lowest since 2003, only reaching $30 billion.

DraftKings will benefit from the resurgence of gambling as it expands its coverage

and user base.

In Friday’s earnings report, DraftKings shared its 320% revenue growth since the

second quarter last year.

The company is live in 12 states that make up 25% of the country’s population.

This still leaves plenty of room to grow, and as acquisitions and legislation proceed,

DraftKings is positioned to expand.

Looking at the DraftKings Stock Card, what bothers me is its negative

free cash flow which could be an indicator that the company is still trying to figure

out

how to make money with its core business.

I'd like to keep monitoring DraftKing to see more stability in its operation.

But, DraftKings isn't the only game in town.

Type in “gambling” in the search bar on Stock Card,

or take a look at the themes and collections DraftKings belongs to,

and the watchlist of 65 companies in the Gambling collection.

Better yet, create a new filter, then just add gambling and “no cash concerns.”

There you have 9 stocks on a neat and tidy list.

Let me save it and give you a link to this watchlist I just created in the show notes.

[What's Down?]

>> Hoda: I noticed a company I didn’t recognize on top of Stock Card’s losers list today.

It's Axsome Therapeutics (AXSM).

I got curious to see what could cause a stock to

drop 45% in one day.

It seems it's a pharma stock that announced regulatory setbacks with the FDA

on its major depressive disorder drug.

This made it clear for me why the stock dropped that much.

Yet again the market is reacting to clinical trial news.

So, is this a buying opportunity?

Let's find out:

Axsome Therapeutics is a clinical-stage biopharmaceutical company.

In today’s earnings report, the company announced that the FDA had halted the approval

process of its major depressive disorder treatment AXS-05,

because of deficiencies in the drug’s regulatory application.

The CEO admitted that this could likely delay the eventual approval of the drug.

Leading up to this, AXS-05 has been delivering great results in phase 2 trials.

Axsome share price has fallen quite a ways since its January high,

losing nearly half of its value even before today's nosedive.

This sudden drop in price is very characteristic of pharmaceutical companies

that are in the clinical trial stages.

The most important question is whether it has enough cash to keep going.

The company stated in today’s report that its cash reserves are enough to keep it

afloat through the potential commercial launch of AXS-05 in MDD and AXS-07,

or at least until 2024.

The company also has other treatments in the pipeline.

Looking at the Stock Card, while investor sentiment may be very poor,

the analyst consensus is to buy.

The knee-jerk reaction that today’s setback brought seems to be a great opportunity

to pick up some shares at a discount if you can tolerate volatility

and possible additional delays in the drug's approval.

You never know when a drug is approved, so this is indeed a risky bet.

[Featured Partner Portfolio]

>> Hoda: Folks, Stock Card partner Joseph Hogue from let's Talk Money channel has

a new video and stock recommendations to buy in August.

This month's portfolio review is quite cool because he has invited his

community to come up with ideas.

I quite enjoyed the video and got at least one good idea to add to my portfolio.

Watch Joseph's video and make sure to follow his Bow Tie Nation portfolio to

get notified when he adds companies to the list.

[Give Stock Card A Try!]

>> Hoda: That's it for today.

If you haven't already done so, please give Stock Card a try,

research as many stocks and ETFs as you'd want,

and consider following a few successful investors by visiting the Stock Picks

page on the Stock Card platform.

Don't forget to sign up for a 14-day free trial with promo code "rollwithourceo"

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And, come back tomorrow for another market recap report.

See you then.