Is Draft Kings publicly traded?
Even though there are no sports to bet on, DraftKings, the popular sports betting platform, on Friday became a publicly traded company after closing its business combination with sports gambling-tech company SBTech and Diamond Eagle Acquisition Corp.
Is DraftKings stock a good investment?
The stock's lowest day price was 22.43. Draftkings has a very high chance of experiencing financial distress in the next few years of operation. It has also generated negative returns for investors over the last 90 days. Equity ratings for Draftkings are calculated daily based on our scoring framework.
Is DraftKings profitable?
How profitable is DraftKings? Investors are wrestling with DraftKings valuation, which is nearly $13 billion, given what looks likes a long road to profitability. The company has guided to 2020 revenue of about $520 million, with analysts seeing sales of more than $700 million in 2021.
Is DraftKings down right now?
DraftKings stock is down over 20% this month despite having beat Wall Street earnings estimates and raising its guidance for the full year. Valuation has been a main concern.
Is DraftKings a good long term stock?
Although revenues over the past year have been rising, the company is still operating at a loss, making DraftKings stock a speculative bet for investors. Additionally, a general market rotation into value stocks over high-flying growth stocks has punished DraftKings shares over the second half of 2021 and early 2022.
Is DKNG a good stock to buy?
Katz reinstated coverage of DraftKings (ticker: DKNG ) at a Buy on Monday, saying the current risk/reward was “highly favorable.” “We maintain DKNG is among the best positioned with a strong brand, first-mover advantage, resources, and strategic clarity,” he wrote in a research note.
Is DraftKings losing money?
DraftKings lost $326 million in the fourth quarter, and had fewer users than expected. The loss came despite healthy growth in the top line in the last three months of 2021, with sales rising 47 percent to $473 million. The Super Bowl ad blitz is expected to further bolster legalized sports betting.
What is the forecast for DraftKings stock?
The 28 analysts offering 12-month price forecasts for DraftKings Inc have a median target of 24.50, with a high estimate of 60.00 and a low estimate of 13.00. The median estimate represents a +90.51% increase from the last price of 12.86.
Is DraftKings Buy Sell or Hold?
The DraftKings stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average.
Will DraftKings stock go up tomorrow?
Tomorrow's movement Prediction of Draftkings Inc DKNG as on 13 Jul 2022 appears strongly Bullish. This stock started moving upwards as soon as it opened....Munafa value: 55 as on 13 Wed Jul 2022.Upside target12.48Upside target11.72Downside target11.66Downside target11.43Downside target11.285 more rows
Will DraftKings become profitable?
Speaking at a fireside Q+A session with Stephen Grambling at Goldman Sachs 2022 Travel and Leisure Conference this week, Robins firmly positioned DraftKings' targets toward becoming a profitable company following a fierce battle to gain market share and acquire high-value customers in the early days of state launches.
Does DraftKings make a profit?
In each of the offered games, DraftKings has a slight statistical advantage over the player. Over time, as those statistics play out, DraftKings will eventually win more bets than it loses. Essentially, DraftKings profits by paying you winnings that are lower than the odds that would make a game break even.
Is DraftKings debt free?
Enjoying a strong balance sheet as well, DraftKings has $2.4 billion in cash and only $1.3 billion in debt.
What is Nio price target?
NIO Inc (NYSE:NIO) The 31 analysts offering 12-month price forecasts for NIO Inc have a median target of 29.96, with a high estimate of 66.30 and a low estimate of 21.76.
Is NIO a buy or sell?
The NIO stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.
Is Penn a buy or sell?
Penn National Gaming has received a consensus rating of Buy. The company's average rating score is 2.74, and is based on 14 buy ratings, 5 hold ratings, and no sell ratings.
What happened
Shares of DraftKings ( DKNG -21.62% ) plunged 21.6% on Friday, after the fantasy sports and online betting company warned of larger losses in the coming year.
So what
DraftKings' revenue climbed 47% year over year to $473 million in the fourth quarter. The gains were driven by its entrance into newly legalized gambling markets and intensified customer-acquisition efforts.
Now what
DraftKings said new state launches would help its full-year revenue grow by 43% to 54%. Its updated sales forecast of $1.85 billion to $2 billion is up from a prior estimate of $1.7 billion to $1.9 billion.
Why DKNG Stock Could Keep Dropping
After falling more than 25% since January, and more than 50% since November, it may appear as if the dust is settling on the DraftKings selloff. Other U.S. sports betting pure plays, like Rush Street Interactive (NYSE: RSI ), have started to bounce back.
At What Price Would DraftKings Become a Buy?
At current prices, I’m taking a bearish view on DKNG stock. But that doesn’t mean I’m completely bearish on it. As bullish analysts like Morgan Stanley’s Thomas Allen have argued, it has leading market share in the sports betting industry. This, plus the expansion of sports betting into other large U.S.
Hold Off for Now, But Pounce if it Drops Again
Admittedly, my suggested play with DraftKings (wait for it to drop to $10-$15 per share) isn’t foolproof. In hindsight, $20 per share could prove to be its floor. Those overly cautious (such as myself) could “miss out” on its comeback.
Gambling Legalization Matters for DKNG Stock
Legal Sports Report said a federal court decision will cease sports betting in Florida. This ruling adds uncertainty to DraftKings in the near term. Investors are skittish in holding DKNG stock because of its valuation. At over 20 times sales, five times book, and a debt/equity of 0.68 times, the company’s growth prospects cannot weaken.
Modest Third-Quarter Results
In the third quarter, DraftKings posted revenue growing by 60%. Its monthly unique payers (MUPs) grew by 31%. Monthly unique paying customers averaged 1.3 million. The company benefited from strong unique payer retention. It added users through its iGaming and Sportsbook products. Its expansion of both products also lifted MUPs.
Opportunity
On Nov. 1, DraftKings ended its $22 billion deal to buy Entain. Its decision not to proceed is a positive development for shareholders. The firm would have paid a premium to grab a company with a solid record of accomplishment of growth. This comes at an expensive price target.
Growth
Besides an initial lift in the first 30 days of launching in Wyoming and Arizona, DraftKings has product innovations to drive growth. For example, Rocket ( on slide 4) and NFL Flash Bet will lift their gross margins. The company is in the early phases of growing DraftKings Marketplace. It launched the marketplace on Aug.
Fair Value and Your Takeaway
On Wall Street, analysts have a price target that ranges from $34 to as high as $105. On Stock Rover, a stock scoring service, DKNG shares have weak grades. The stock suffers from a poor valuation and quality score.
