Jim Cramer on if now is the time to get into DraftKings

If you're anything like me, you're looking forward to the NFL playoffs. If this year's playoffs are anything like last year, it could be very exciting. Whether your team's in it or not, and luckily mine is, go birds, chances are a lot of you will be watching at least one of the games this weekend. More important, I think there's a way to make money off this, which brings me to the stock of DraftKings. No, I'm not planning to give you gambling advice. I'm giving you a stock pick. I think there's a good case to buy DraftKings down here, but first you need to understand what's been happening with this one. Stock underperformed last year, up 5% for 2024, but really it was doing great until the stock sold off hard in December. While DraftKings posted solid results in November, there was one glaring issue. All you people betting at home, you're winning too much. As CEO Jason Robbins said in the conference call, quote, we experienced the most customer-friendly stretch of NFL sports outcomes we had seen early in the fourth quarter, ever, ever seen early in the fourth quarter. Can you imagine? That caused the company to take a $250 million revenue hit. Boy, is that bad news for shareholders. And these customer-friendly outcomes in the NFL have kept on coming. Basically, the favorites are winning at a higher rate than they normally do. And because more people bet on the favorites, it's costing DraftKings money. They've just had a real bad run of luck here. Can it last? Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Cramer. Hashtag MadMentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.