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Source: Pixabay, Golden Nugget Online Casino Facebook

Is Golden Nugget or GNOG Stock a Good Investment?

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On December 30, 2020, Golden Nugget Online Gaming (GNOG) company went public through the SPAC (special purpose acquisition company) route. The company decided to take the SPAC IPO route to speed up it's listing on the public market. Is GNOG stock a good investment?

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Golden Nugget Online Gaming went public through a blank-check company, Landcadia Holdings II (LCA). On Dec. 29, Lancadia Holdings II said that the company completed its reverse merger with Golden Nugget Online Gaming. The merger deal was approved by a majority of Landcadia's shareholders on the same day.

Should I Buy Golden Nugget Stock GNOG?
Source: Pixabay
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Golden Nugget on Stocktwits

Golden Nugget stock has become a major talking point on social media platforms. An investor named RSI_MACD_MOMO_Investor on Stocktwits is bullish on GNOG stock. Golden Nugget is an online gaming and digital sports entertainment company. The investor thinks that online gambling is still a hot sector. The company will likely benefit as states continue to legalize online gambling. The investor added that the company is still in the number one spot in New Jersey.

Golden Nugget doesn't pay dividends

Currently, Golden Nugget doesn’t pay dividends.

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Golden Nugget's valuation

The news of the merger between the SPAC and Golden Nugget first surfaced in June 2020. The deal gave Golden Nugget an estimated valuation of $745 million or 6.1x estimated 2021 sales of $122 million.

Following the merger, Tilman Fertitta will continue to serve as GNOG’s chairman and CEO. In a press release, Fertitta said, “I am pleased to see the business combination finally close. We see tremendous opportunity in the online gaming space and are excited to be a part of it.”

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Source: istock
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Golden Nugget’s stock forecast

Golden Nugget Online Gaming is being publicly traded on the Nasdaq under the ticker symbol “GNOG.” Currently, the stock isn't being tracked by any Wall Street analysts.

Golden Nugget stock looks like a buy

Golden Nugget stock won many investors' hearts in 2020. The stock gained nearly 100 percent last year. With the huge spike, is Golden Nugget stock still a good investment?

Golden Nugget stock is a buy based on the strong growth outlook. The company will likely benefit as more states legalize online gambling. Golden Nugget will likely generate sales of $122 million in 2021. The company plans to introduce its online casino games in Michigan and Pennsylvania this year. The online gambling market will likely be worth $127.3 billion by 2027, according to Grand View Research.

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