At first glance, DraftKings (DKNG 0.86%) and GameStop (GME 0.92%) appear to hold little in common. One is an emerging online gaming site, while the other is an established tech retailer working to redefine itself. However, the two consumer discretionary stocks hold one key commonality — they have hinged part of their hopes on building a non-fungible token (NFT) marketplace.
NFTs are unique, secured data attributes stored on a distributed ledger. In recent months, they have fallen out of favor, so much so that these marketplaces could become a detriment to both stocks. Still, regardless of NFTs, one stock will likely emerge as holding more potential.
The NFT marketplaces
NFTs surged in popularity in recent years. But according to the industry website NonFungible, interest has dropped significantly. Its sales volume fell by nearly 50% in the first quarter of 2022.
It remains unclear whether NFTs were a one-time fad or if they have just encountered a rough patch. But despite the turmoil, both DraftKings and GameStop have moved to enter this marketplace.
DraftKings has already launched its marketplace. The NFT site specializes in collectibles related to sports, entertainment, and culture. Also, it supports curated NFTs and secondary transactions.
In contrast, GameStop has not launched its NFT site just yet, but has plans to do so by the end of July. Moreover, it intends to target some different markets than DraftKings. It will focus more explicitly on the metaverse and emphasize selling blockchain tokens representing metaverse assets. Digital real estate and weapons used in games are examples of what its marketplace might sell.
Evaluating their potential
Of the two NFT marketplaces, DraftKings’ potential is easier to measure at this time. This is primarily because it is the site that is currently operational, having launched in 2021. Despite that first-mover status, DraftKings did not discuss NFTs extensively in its first-quarter earnings report….
