Why Enthusiast Gaming Was a Big Winner on Wednesday

What happened

Investors sure were enthusiastic about Enthusiast Gaming Holdings (NASDAQ:EGLX) stock on Hump Day. The digital gaming platform developer triumphed over many other stocks with a nearly 8% gain on the day, fueled by a new deal with a top pro sports league.

So what

Enthusiast announced on Wednesday that, in a tie-up with the National Football League (NFL), it is launching NFL Tuesday Night Gaming. This is a video game league that will air live contests on Alphabet's YouTube in the U.S. and Canada on Tuesdays. The virtual league's season will roughly match that of the real-world NFL, even down to the bye weeks in which certain teams get one-week breaks in their schedules.

The teams will consist of 12 current or former NFL players and six of what Enthusiast terms "gaming creators." Like the physical football league, the top teams will advance to a set of playoffs, and ultimately a championship game. There will also be an all-star game that more or less mirrors the NFL Pro Bowl.

In its press release trumpeting the new program, Enthusiast quoted its president Bill Karamouzis as saying that it "is a new and exciting content platform for brands and agencies to connect with younger audiences through bespoke custom content and talent integrations, including owned moments, featured segments, social activations, and more."

Now what

Since Enthusiast didn't provide any of the financial particulars of the NFL deal, it's tough to gauge how much of an impact this will have on its fundamentals. Regardless, any deal with a high-profile athletic league instantly raises a company's visibility, and it's very encouraging that Enthusiast has scored a partnership with such a major player in the sports world.

10 stocks we like better than Enthusiast Gaming Holdings Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Enthusiast Gaming Holdings Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of August 17, 2022

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy.