DraftKings Shares Soared 300% As COVID Killed Sporting Events

There are no baseball, basketball, golf, equestrian, lacrosse, auto racing, and or other sporting events at the moment. Major League Baseball could restart in July, but there is still too much uncertainty. Football, if the season starts on time, won't be seen until late August, and the 145th Preakness Stakes won't be seen until October. 

But DraftKings, an American daily fantasy sports betting website, which recently went public, has seen its stock soar 273% since lockdowns began and all sporting events canceled. 

Howard Lindzon, the co-founder of StockTwits, tweeted: "The chart of the day is Draft Kings, which has quadrupled to $12 billion now since it reverses merged into a shell and then changed ticker to $DKNG...unbelievable outcome considering the long regulated road and the fact that NO SPORTS !? Face with tears of joy."

The sports betting site has a market cap ($12 billion) larger than Wynn Resorts and American Airlines.

DraftKings CEO Jason Robins recently told CNN Business: "We have a good story that resonates with investors for the long-term."

Robins admitted that users placing bets on sporting events are down this year due to virus-related lockdowns and social distancing -- but he said players have been betting on other types of events, such as Russian table tennis and esports. 

Which explains why the stock has risen 273% as all major sporting events across the world have been canceled? 

JPMorgan CEO Jamie Dimon beautifully summed up the latest V-shaped recovery in markets on Wednesday, indicating that, "Fed liquidity is propping up stocks, all asset classes." 

And with the Fed blasting a monetary cannon at the stock market, there's also Robinhood day traders buying every dip possible of the crappiest stocks.   

None of this seems sustainable...