Is DraftKings A Good Investment In Its Current Low?

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DraftKings is well positioned to benefit from the growing shift in State attitudes on sports betting. DraftKings is an online sports platform where users can participate in daily fantasy sports and earn cash prizes. According to IBD statistics, the firm anticipated a loss of $3.60 per share in 2021 and $2.40 per share in 2022 after losing $3.95 per share in 2020. This being said, DraftKings is on its way to being profitable.

DraftKings missed their Q3 profit and sales forecasts on November 5th. On revenue of $212.8 million, the firm lost an adjusted $1.35 per share. Meanwhile, management raised the midpoint of its fiscal 2021 sales projection to $1.26 billion from a previous $1.25 billion. For their 2022 fiscal year, the business expects sales to range between $1.7 billion and $1.9 billion, while analysts expect $1.29 billion in revenue.

Latest Company Updates for 2022 Are As Follows:

On January 26th 2021, DraftKings shares jumped more than 5% after Goldman Sachs upgraded it from neutral to buy and raised the price target from $45 to $65. Bernstein actually initiated coverage with an outperform rating and a target price of $71.

On February 8th, Ark Invest added 502,400 more shares to its ETF portfolio. Cathie Wood’s Ark Invest (ARKW) revealed a new holding in the ARK Next Generation Internet ETF of 620,300 shares on February 1st.

DraftKings and the UFC established a partnership on March 4th to become the UFC’s official sportsbook and “daily fantasy partner” in both the United States and Canada.

On April 15th, the National Football League and DraftKings announced that the sports entertainment and gambling firm would become an official NFL sports betting partner. According to the NFL, DraftKing’s status as the NFL’s sole official daily fantasy partner will also be renewed.

Wall Street’s very own short seller Hindenburg Research issued a negative report on the company on June 15th. According to the study, a DraftKings subsidiary is linked to organized crime.

On August 9th, DraftKings and Golden Nugget Online (GNOG) agreed to purchase each other in an all-stock deal for $1.56 billion.

DraftKings declined to make a serious offer for the sports betting behemoth Entain on October 26th.

On November 4th, both the NBA and DraftKings established a multiyear partnership making DraftKings a co-official sports betting partner of the league. DraftKings will be able to use NBA rights and assets in its sports betting, daily fantasy sports, iGaming and free-to-play products and promotions as a result of this arrangement.

In the sports-betting market, DraftKings stock is a good long-term investment and the company’s future is exciting. Despite its lack of profits, the firm has had tremendous revenue growth and is now one of the market leaders in the online betting craze. Ultimately, it is not a buy right now because the stock is nearly 70% below its 52-week high and not at a fresh purchase point. Wait for DKNG to break out past a fresh purchase level.

For more latest news in US stock market you may also visit us at Prime Bright Investment Limited through our website primebrightinvest(.)com or contact us via email.

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