3 Sectors Winning Big Despite Global Economic Chaos
FN Media Group Presents Oilprice.com Market Commentary
London – July 22, 2020 – The stock market rally is faltering, and investors are now looking for new hot spots to park their money for a lasting COVID bump. Three sectors are attracting all the attention. Mentioned in today’s commentary includes: NIO Inc. (NYSE: NIO), Nikola Corporation (NASDAQ: NKLA), General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), DraftKings Inc. (NASDAQ: DKNG).
As investors await new earnings reports and COVID-19 uncertainty rises amid a massive surge in cases in the U.S. without any assurance of more stimulus, all eyes are on EVs and biopharma for the obvious risk-return rewards, but online gambling offers the biggest payout, with potential Netflix-sized growth prospects.
The Robinhood no-fee trading app has democratized the investing world and unseasoned young traders with a penchant for impact investing have jumped into the digital trading world. They’re hot on EVs in particular, and so far, 10,000 day traders an hour are buying up Tesla, pushing the EV darling’s stock to remarkable new heights.
On the home entertainment scene, streaming, esports, video gaming and online sports betting are reaching new heights, while sports betting continues to pull in tons of cash during the pandemic. One new entrant, FansUnite Entertainment Inc. (FANS; FUNFF), is hot on the acquisition trail in Canada and now launching a more stealth-like move into the U.S.
The first phase of the wildly explosive online gaming and sports betting industry was all about getting the tech right. The second phase is about bringing it all together. And FansUnite is where it all comes together.
Meanwhile, the biopharma industry is riding high on its mandate to save the world, with one stock exploding for a company that doesn’t even have any product on the market–and never has. Still, it’s gotten the farthest with COVID vaccine test results, and now its valuation is futuristically ballooning.
#1 Electric Vehicles Are Booming
There’s absolutely no stopping the ESG momentum right now, and Tesla (TSLA) is the prime beneficiary for a couple of reasons. COVID-19 should have hit the EV industry hard because of a pandemic lull in driving in Q2–but it didn’t. Instead, EVs have been one of the most visible beneficiaries of the solidified power of impact investing, particularly with regard to climate change.
Tesla has been tearing it up, with stocks surging threefold year-to-date, and it’s also boosting other EV stocks in the process. Now, not only is Tesla the biggest manufacturer of electric cars and the most valuable car company in the world, but it’s even bigger than American oil supermajor ExxonMobil.
Like Tesla, NIO Inc. (NIO) has also seen its share prices skyrocket since the beginning of the year. Though the trade war weighed on it significantly in 2019, Nio has received a wave of investor interest as China’s economy began to recover from the COVID hit. The stock has gone from $3.72 back in January to $12.86 at the time of writing, earning patient investors a stunning 245% return. The momentum is also now resulting in a downpour of IPOs in this space as more companies try to latch onto this at the right time.
Hydrogen truck maker Nikola (NKLA) has gone public after a reverse merger with VectoIQ in June, with its stock up more than 60% since. Likewise, Hyliion EV truck company announced its own IPO plans in June, merging with Tortoise Acquisition Corp.
EV maker Fisker plans to go public via a merger with Spartan Energy Acquisition, in a deal that values Fisker at $2.9 billion, and China-based EV startup Lixiang Automotive Inc. filed for IPO last week.
It’s a space that is filling up so fast that it threatens to leave traditional automakers in the dust. But they’re not going out without a fight.
In addition to its line of electric cars, General Motors (GM) has set itself apart from many large automakers, creating its own brand of electric bikes, called Ariv. While they err on the side of pricey, coming in at $3,800 per unit, they do boast a high top speed and can travel a modest distance on a single charge.The kicker for many, however, is that they can fold into an easily carriable pack, making them the perfect choice for a lot of commuters. Especially in big cities like London or Berlin.
Ford (F) is also taking a different approach to green mobility. It’s swooped right into the scooter market, buying Spin for a clean $100 million. Initially deployed in San Francisco back in 2017, Spin is widely considered to be a part of the Big Three of the scooter world, along with Lime and Bird. While Ford’s buyout of Spin made headlines, it’s certainly not the first urban transportation alternative Ford’s sunk its teeth into.
#2 Online Betting Is The Next Multi-Billion Industry
Welcome to the next multi-billion-dollar industry. Competitive video gaming and esports were already picking up major momentum before the pandemic, but when traditional sports events were canceled in most countries around the world, esports picked up tens of millions of new viewers instantly.
Now, global esports industry revenue is set to top $1.05 billion in 2020 and projected to jump another 50% to $1.6 billion by 2023, according to SafeBettingSites.com data. It was already on a tear before COVID, jumping 24% from $776 million in revenue in 2018 to a smashing $957-million-plus in 2019. Add online esports betting and online gambling to this mix and you get a market worth $2 trillion–just now being tapped.
One company in a great position is FansUnite (FANS; FUNFF), which launched on the Canadian Securities Exchange on May 5, and through its new acquisition, has two esports-themed casino games under its umbrella–both set to be released this year on multiple casino game aggregators, with more in development.
Just two months after scooping up UK-based McBookie–a white-label sportsbook that’s been around for over a decade–FansUnite moved to merge with Canadian esports giant Askott Entertainment. The combined entity now has 350 CAD million B2C betting volumes since inception, and over 300,000 registered members. Even better: It gave FansUnite four B2B contracts generating revenue with leading esports companies.
Now, it’s hungry for more M&A. The modus operandi? To build a global infrastructure behind the scenes that will seamlessly connect the world’s leading gaming platforms through new, cutting-edge technology. Now it’s eyeing more acquisitions and a stealthy swoop into the U.S. market.
And where the pre-COVID online gambling environment was a minefield of mistrust–there aren’t many worries here: FansUnite is the new face of online casino transparency and cleanliness. In fact, Scotland-based McBookie already operates under a sub-license granted by the UK Gambling Commission. Its users are able to settle any betting disputes through the IBAS, a U.K.-based third-party independent arbitrator whose rulings are binding on registered operators up to the tune of £10,000.
FansUnite (FANS; FUNFF) is cleaning house and taking names in the future of online gambling, and it’s stealth moves are against the backdrop of some major user boosts and mega consolidation in this booming industry:
The eNASCAR Series–the digital version of the most-watched competitive sports event on cable TV this year–now draws over 1.3 million viewers, and four megamergers in the sports betting space have set the tone with the most recent to draw massive attention being the tie-up between DraftKings and SBTech.
DraftKings (DKNG) was a big winner in the merge. Its stock has skyrocketed since the merger, taking its valuation to $12.7B less than two months since the event. That’s already a 346% gain for investors in just a few months and some project it to go even higher. Investors who jumped on this when it went public in April were handsomely rewarded. It’s now valued higher than many casino giants.
#3 The Biopharma Roller Coaster
Biopharma is banking in a big way on a return to normalcy. It’s a pandemic, so naturally, biopharma is the biggest beneficiary. After all, the entire world is waiting for this industry to come up with a vaccine that will allow life to get back to normal. That’s a lot of pressure on a single industry–even if the end game is a wildly lucrative one. It’s typically a longer game that investors have to play here, but in this case, time is of the essence.
Every time there’s any tiny glimmer of hope published about ongoing COVID vaccine research and development, the stocks in key biopharma and big pharma companies rally, with some of the key names being Astra Zeneca, Gilead Sciences, GlaxSmithKline , Pfizer and, most recently, Moderna.
So, What Next?
While ESG is taking over and Robinhood is inflating Tesla beyond everyone’s wildest imagination, and while pharma has massive money-making potential with equally massive risk (watch Moderna start producing a vaccine that is still experimental), home entertainment is where money may be safer. And the biggest gains could be set for the online gambling segment.
COVID is still on the rise, with a line-up of states considering new stay-at-home orders and business still up in the air. Home entertainment is the biggest beneficiary of this, and not only that: Even when COVID eventually subsides or we have a vaccine, no one is likely to give it up.
Fans Unite (FANS; FUNFF) is now one of Canada’s leading online gaming companies, and its next stop is the United States. It’s a stealth move on an industry that’s already over 10x bigger than the marijuana industry, and once everything’s consolidated, it may well be worth $2 trillion–and counting.
By. Stella Kay
IMPORTANT NOTICE AND DISCLAIMER
Neither the author nor the publisher, Oilprice.com, was paid to publish this communication. The owner of Oilprice.com owns shares and/or stock options of two of the featured companies (Tesla and FansUnite) and therefore has an incentive to see the stock perform well. The owner of Oilprice.com has no present intention to sell any of either issuer’s securities in the near future but does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuers in the market. This share ownership should be viewed as a major conflict with our ability to be unbiased. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on an interview conducted with FansUnite’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.
FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
INTELLECTUAL PROPERTY. Oilprice.com is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.
DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact e-mail: firstname.lastname@example.org U.S. Phone: +1(954)345-0611