3 Reasons to Sell LNW and 1 Stock to Buy Instead

Light & Wonder, Inc. (LNW) has been a popular choice among investors, but recent developments and industry trends may warrant a re-evaluation of the stock. Here are three reasons to consider selling LNW and one alternative stock to buy instead.

1. Legal and Regulatory Challenges: LNW has faced several legal and regulatory challenges that have impacted its share price and investor confidence. In November 2024, shares in LNW dropped by 18.8% due to a copyright ruling against its Dragon Train slot machines (Source: GlobeNewsWire, November 8, 2024). Additionally, the company is being investigated for securities fraud, with investors urged to contact law firms about their rights (Source: Accesswire, November 4, 2024). These legal issues raise concerns about the company's ability to maintain its growth trajectory and attract investors.
2. Slowing Momentum: Despite the company's optimism, momentum in LNW's stock has been slowing. In August 2024, the stock price moved over -5.97% to $96.40 (Source: Seeking Alpha, August 5, 2024). This decline in momentum may indicate waning investor interest or concerns about the company's prospects. Investors should be cautious about the potential impact of slowing momentum on LNW's long-term growth prospects.
3. Analyst Skepticism: While some analysts have a "buy" rating for LNW, others may have different opinions. In August 2024, the stock had an analyst recommendation of "buy" with a target price of $73.00 (Source: ARTICLE_START_ID). However, this target price is significantly lower than the stock's 52-week high of $115.0, indicating potential skepticism among analysts. Investors should consider the potential impact of analyst opinions on the company's stock price and investment appeal.



As an alternative to LNW, consider investing in DraftKings Inc. (DKNG), a leading online sports betting and gaming company. DraftKings has a strong market position, innovative products, and a growing user base. The company's focus on the rapidly growing online gaming market and its strategic partnerships make it an attractive investment opportunity. Additionally, DraftKings' strong financial performance and growth prospects make it a more appealing option compared to LNW.



In conclusion, investors should consider selling LNW due to its legal and regulatory challenges, slowing momentum, and analyst skepticism. DraftKings Inc. (DKNG) offers a more attractive investment opportunity, with a strong market position, innovative products, and growing user base. By diversifying their portfolio and investing in DKNG, investors can better position themselves to capitalize on the growing online gaming market and its long-term growth prospects.