The Sports Media market is one of the most dynamic and chronically successful in the US economy and capital markets. But it has also been one of the hardest hit by the pandemic health crisis.
That said, the pandemic isn’t “forever” and the market likes to see around the corner. With that in mind, we take a look at some of the most interesting stocks in the space, including Nike Inc. (NYSE: NKE), Churchill Downs Inc. (NASDAQ: CHDN), B2Digital Inc. (OTC: BTDG), and Draftkings Inc. (NASDAQ: DKNG).
Nike Inc. (NYSE: NKE) trumpets itself as a company that designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear.
It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.
Nike Inc. (NYSE: NKE) recently reported fiscal 2021 financial results for its first quarter ended August 31, 2020, including revenues of $10.6 billion, down 1 percent on a reported basis and flat to the prior year on a currency-neutral basis, direct sales at $3.7 billion, up 12 percent on a reported basis, and up 13 percent on a currency-neutral basis, with growth across all geographies, and Brand digital sales up 82 percent, or 83 percent on a currency-neutral basis, with double-digit increases across North America, Greater China, and APLA and triple-digit growth in EMEA.
“Our results this quarter continue to demonstrate NIKE’s full competitive advantage, as we strengthen our position in the midst of disruption,” said John Donahoe, President, and CEO, NIKE, Inc. “In this dynamic environment, no one can match our pace of launching an innovative product and our Brand’s deep connection to consumers. These strengths, coupled with our digital acceleration, are unlocking NIKE’s long-term market potential.”
And the stock has been acting well over recent days, up to something like 3% in that time. Shares of the stock have powered higher over the past month, rallying roughly 14% in that time on strong overall action.
Nike Inc. (NYSE: NKE) generated sales of $10.6B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 67.7% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($9.5B against $8.6B).
Churchill Downs Inc. (NASDAQ: CHDN) is another interesting play in the space. The company bills itself as an industry-leading racing, online wagering, and gaming entertainment company anchored by our iconic flagship event – The Kentucky Derby. The company owns and operates Derby City Gaming, a historical racing machine facility in Louisville, Kentucky.
It also owns and operates the largest online horse racing wagering platform in the U.S., TwinSpires.com, and sports betting and iGaming through its BetAmerica platform in multiple states. CHDN is also a leader in brick-and-mortar casino gaming with approximately 11,000 slot machines and video lottery terminals and 200 table games in eight states.
Churchill Downs Inc. (NASDAQ: CHDN) most recently announced its plans to open simulcast and historical racing machine operations at Oak Grove Racing, Gaming & Hotel in Oak Grove, Kentucky, to the public on Friday, September 18. According to the release, Oak Grove will debut 1,325 state-of-the-art HRMs with some of the best themes from Ainsworth, Scientific Games, and International Gaming Technology. Dining and beverage options include Garrison Oak Steakhouse, two quick-serve eateries, a coffee house, a sports bar, and luxurious lobby bar. The second phase of the Oak Grove project will open in October 2020 and will include a 128-room hotel, equestrian center, amphitheater, and RV Park.
“We have an exceptional team poised to deliver a premier entertainment experience and a regional destination for Western Kentucky and nearby Nashville, Tennessee,” said Bill Carstanjen, CEO of CDI. “We are committed to investments like Oak Grove that will help support live racing at Kentucky racetracks by generating larger purses and attracting better horses.”
And the stock has been acting well over recent days, up to something like 12% at that time.
Churchill Downs, Inc. (NASDAQ: CHDN) managed to rope in revenues totaling $185.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of -61.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($699M against $488.2M).
B2Digital Inc. (OTC: BTDG) is unique in this group because it owns its own content and production machine and recently created an innovative marketing process to drive PPV sales, which have recently hit record levels. In other words, this is the “premier development league in MMA”, but it’s also a sophisticated media play with a rapidly growing reach.
The company operates live events, pay-per-view media, gyms, and other resources to maximize the development of future stars in the MMA sport. B2Digital operates a number of fighting events brands, including Pinnacle, HRMMA, Strikehard, and others, and has developed and deployed the systems and technologies for the operation of the B2 Fighting Series. This includes social media marketing, event management, digital ticketing sales, digital video distribution, digital marketing, PPV, FTV, merchandise sales, brand management, and financial control systems. B2Digital owns all rights for TV, internet, social media, media, merchandising and trademarks, and branding for the B2Digital companies.
B2Digital Inc. (OTC: BTDG) most recently announced the live launch of the new B2 Fighting Series App for Over-The-Top (“OTT”) distribution on Amazon Fire TV.
“We worked extremely fast to get this developed, launched, and available in the Amazon Fire TV store because we believe that OTT TV distribution of our proprietary action-packed live content is a game-changer in the market for fans of MMA,” commented Greg P. Bell, Chairman & CEO of B2Digital. “Now, the remaining B2 Fighting Series fights of 2020 will be Live on PPV on Amazon Fire TV with our top-tier amateur and professional Live MMA events. Our major title bouts and rising stars of MMA that our hardcore fans love to watch can now be viewed on Amazon Fire TV. We will also expect to have exciting news very soon on delivering the B2 Fighting Series over Apple TV.”
B2Digital Inc. (OTC: BTDG) has shown strong sales growth, and more importantly, has put in place a number of strategies pointing to accelerating breakout growth ahead, including innovations on the marketing front and an aggressive schedule of live PPV events this fall.
Draftkings Inc. (NASDAQ: DKNG) is particularly interesting given the recent COVID outbreaks among several high-profile NFL teams – the company is obviously tethered to the fate of the NFL in a major way.
The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design and development of sports betting and casino gaming platform software for online and retail sportsbooks, and casino gaming products. The company distributes its product offerings through various channels, including traditional websites, direct app downloads, and direct-to-consumer digital platforms.
Draftkings Inc. (NASDAQ: DKNG) most recently announced that Erik Bradbury has been named the Company’s Chief Accounting Officer and principal accounting officer effective September 10, 2020, reporting to Jason Park, the Company’s Chief Financial Officer. Mr. Bradbury, who brings more than 16 years of experience in corporate accounting to DraftKings, was most recently a Partner with Ernst & Young and served as a Professional Accounting Fellow at Financial Executives International.
“We are thrilled to have Erik join DraftKings at this exciting time,” said Jason Park, DraftKings Chief Financial Officer. “Erik brings a breadth of expertise working with public companies applying U.S. GAAP, IFRS, and SEC reporting requirements, which will enhance our already strong corporate accounting team and help scale this function as the Company continue to grow.”
And the stock has been acting well over recent days, up to something like 19% in that time. Shares of the stock have powered higher over the past month, rallying roughly 51% in that time on strong overall action.
Draftkings Inc. (NASDAQ: DKNG) brought in over $71 million in its last quarterly financial data.
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