Here's the Best Stock I Bought in 2020
My best stock in 2020 was also an unexpected one. I bought DraftKings (NASDAQ: DKNG) with the expectation of holding it for years. Then, sports betting stocks went through the roof. I've increased and reduced my holdings in DraftKings a few times this year due to the big volatility, but my big locked-in gains were on shares purchased on July 22, and sold off in chunks on Sept. 22 and Oct. 6, for gains of 46.39% and 57.04% respectively.
My success on the stock is a double-edged sword. While I managed to lock in most of my profits when the stock was up in the high $50s before a major correction, the call was short-lived. DraftKings shares have recovered a great deal from the dip, now trading around $53.70 per share. This is a lesson for you would-be traders. If you have a strong conviction on a company, with a true thesis, it usually pays to just stay invested.
As with most equities these days, the investment basis is the tug of war between potential and valuation. DraftKings' market capitalization of $21.1 billion dwarfs its 2020 revenue guidance of $540 million to $560 million provided in its November earnings release. Next year's revenue expectations are in the range of $750 million to $850 million. With analysts expecting losses to continue through 2021, it is well evidenced that DraftKings shares have a lot of future growth already valued in.
Source Fool.com
