DraftKings (DKNG)

Re: DraftKings (DKNG)

Postby winston » Mon Sep 28, 2020 9:23 pm

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Why This Analyst Sees Nearly 30% More Upside in DraftKings

by Chris Lange

DraftKings Inc. (NASDAQ: DKNG) has been a leader in daily fantasy sports, with roughly 60% of the U.S. market by revenue.

Argus has a Buy rating and a $65 price target on the shares.

The company went public in April 2020.

SBTech, the company’s B2B business, was acquired on April 23, 2020. The B2B segment’s principal activities involve the design and development of sports betting and casino gaming software. The operations of the B2B segment are located mainly in Europe and Asia, with a growing presence in the United States.

The consensus price target is $50.33.

Source: 24/7 Wall St

https://247wallst.com/casinos-hotels/20 ... raftkings/
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Re: DraftKings (DKNG)

Postby winston » Thu Oct 01, 2020 7:11 am

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DraftKings Inc. (DKNG)

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States.

The company provides users with daily sports, sports betting, and iGaming opportunities.

It is also involved in the design and development of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products.

There’s a good deal of growth here.

For one, it just signed sports partnership deals with the New York Giants and the Chicago Cubs. Michael Jordan is now one of its top advisors. And, it just signed a multi-year deal with Disney’s ESPN, which will allow DraftKings to become a “co-exclusive Sports book link-out provider.”

Source: Trade Wins
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Re: DraftKings (DKNG)

Postby winston » Tue Oct 06, 2020 1:20 pm

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DraftKings Says It’s Selling More Stock. What It Said About Its Third Quarter Was More Important.

By Andrew Bary

DraftKings said it expected to report third-quarter revenue of $131 million to $133 million, in line with the FactSet consensus of $131 million. The pro forma revenue gain at the midpoint is 41% relative to the third quarter of 2019.

DraftKings said that “atypical hold rates from NFL wagering” had an estimated negative impact of about $15 million in the quarter. The company’s hold, or profit margin, has historically been around 6.5%. Low hold often results from a high number of favorites paying off for bettors.

The company said its online sports betting handle, or total amount wagered, was expected to have risen 460% in the third quarter relative to the year-ago period and that internet gaming, or iGaming, revenue was expected to be up 335%.

DraftKings expects its monthly unique players to be about 1.02 million in the third quarter, up 64% from the same period a year earlier.

DraftKings also expects sales and marketing expense of $200 million to $210 million in the third quarter. The company and its rivals are spending heavily—offering free initial bets and other offers—as online sports gambling expands to new states like Illinois.

The third quarter sales and marketing expense was considerably higher than an estimate of $134 million from Morgan Stanley analyst Thomas Allen.

There could be more stock sales ahead. “Even after the offering, ~50% of shares outstanding are still held by insiders, with only ~5% under a long-term lockup,” Allen wrote

DraftKings didn’t provide profit guidance but it is expected to operate at a loss in the third quarter with the FactSet consensus calling for a loss of 37 cents a share.

DraftKings stock had rallied more than 75% since the end of August through the close on Friday. The company had a market value of over $22 billion on Friday, making it the second-largest U.S. gambling company behind only Las Vegas Sands (LVS).

The company ended the second quarter with $1.2 billion in cash and no debt.

The selling shareholders are led by Shalom Meckenzie, the founder of SBTech, a provider of sports-betting technology, including odds-making, which was purchased by DraftKings in conjunction with its merger with a special purpose acquisition company earlier this year. Meckenzie, a board member, is set to sell 8.5 million shares and a fund affiliated with Raine Partners is due to sell 5.4 million shares.

No shares are being sold by CEO Jason Robins and DraftKings management. Robins owns 16.8 million of the class A shares (the public shares) and controls the company through ownership of 393 million class B shares that have no economic value.

The equity offering is being led by Credit Suisse and Goldman Sachs and the underwriters have the option to purchase an additional 4.8 million shares.

The deal follows an equity offering of 40 million shares—16 million by the company and 24 million by selling shareholders—in June at $40 a share.


Source: Barron's

https://www.barrons.com/articles/draftk ... yptr=yahoo
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Re: DraftKings (DKNG)

Postby winston » Thu Oct 08, 2020 11:29 am

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DraftKings Slides on Pricing of Share Offering, NFL Worries

DraftKings falls after the sports gambling company announces the pricing of its secondary share offering and more positive coronavirus tests emerge from the NFL.

by DAN WEIL

DraftKings (DKNG) - shares fell sharply Wednesday after the sports gambling company announced the pricing of its secondary share offering and more positive coronavirus tests emerged from the NFL.

One New England Patriots player tested positive and two Tennessee Titans players tested positive. Already, the NFL announced last week that the Tennessee-Pittsburgh Steelers game scheduled for last Sunday would be rescheduled for later in the season.

The Kansas City Chiefs-New England Patriots game was delayed from last Sunday until this Monday. There is now concern that more games will be delayed. Football accounts for a chunk of DraftKings revenue.

DraftKings recently traded at $52.44, down 7.64% The stock has risen 431% year to date.

The company’s public offering consisted of 32 million shares of Class A common stock. The offering price was $52 a share for a total offering of $1.664 billion. DraftKings will sell 16 million shares of its shares, and other stockholders will unload 16 million shares.

DraftKings won’t receive any proceeds from the sale of the other stockholders. It plans to use the proceeds it does receive for general corporate purposes. DraftKings has granted the underwriters a 30-day option to purchase up to 4.8 million additional shares of stock.

Last month, Argus Research initiated coverage of DraftKings with a buy recommendation and a share-price target of $65.

“The online gaming industry is in the early stages of growth, with only 3% of gross gaming revenue in the U.S. generated online, compared to 45% in more mature online gaming markets such as the U.K,” Argus analyst John Eade wrote in a commentary.

Source: TheStreet, Inc.

https://www.thestreet.com/investing/dra ... FL+Worries
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Re: DraftKings (DKNG)

Postby winston » Sat Oct 10, 2020 7:51 pm

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Draftkings: Shoring up the Balance Sheet by Selling Stock Comes With a Price

Canaccord sticks to his Buy rating on DKNG shares, while the $65 price target stays put, too.

The company anticipates Q3 revenue will come in between $131 to 133 million.

MUPs (monthly unique players) increased by 725,000 quarter-over-quarter to 1.02 million, representing a 64% year-over-year uptick.

“Longer term, we see DraftKings persisting as a leading player owing to:
(1) the company's focus on technology and platform development, that should translate into a superior product and player loyalty
(2) an aggressive customer acquisition strategy within prudent ROA guide rails
(3) common ground with investors on the long-term wisdom of this strategy and
(4) a singular focus on this opportunity without having to compete for capital with a legacy business.”


Source: TipRanks

https://finance.yahoo.com/news/draftkin ... 00132.html
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Re: DraftKings (DKNG)

Postby winston » Tue Oct 13, 2020 1:00 pm

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DraftKings Climbs: What Wall Street Is Saying

by TONY OWUSU

Here is what Wall Street is saying about the company.


Oppenheimer (Outperform Rating Affirmed, PT Raised to $65 From $55)

[Competencies] in product development and customer acquisition that DKNG utilized to become the daily-fantasy-sports market leader will allow the company to be a critical player in accelerating the shift in U.S. sports betting from about $150 billion wagered illegally/offshore to licensed domestic operators.

We estimate the U.S. legal sports wagering market growing about 43% annually, reaching about $8 billion by 2025, and $14.4 billion by 2028 as more states regulate sports gaming. [We] expect DKNG to achieve about 25% market share.

- Jed Kelly


Deutsche Bank (Hold Rating Initiated, $48 PT)

The reality is ... that an investment in DKNG isn't really an investment in the company but more in the concept of sports betting and iCasino and the manifestation of both businesses across the U.S.

Simply put, DKNG represents the cleanest way to play this theme.

Our hold rating is not a call on valuation because, quite simply, it doesn't matter if it doesn't make sense to us, as this is a pure-play online-gaming company with few truly comparable peers in what we expect will be a fast-growing top-line environment.

- Carlo Santarelli


Needham (Buy Rating, $70 PT Affirmed)

[Online] sports betting and iGaming coming unlocked in new states are a rising tide for the industry, and ... DKNG has clear first-mover, brand and capital advantages.

[Customer acquisition cost and online sports betting] profitability will remain persistent debate points.

[We] remain confident that the company is acquiring customers with a stringent view of [return on investment and customer lifetime value] while maintaining if not increasing its share in the early markets.

Retention remains an open question, but we take DKNG's performance to date in states like NJ (with 14 other competitors) as the best indicator for success.

- Brad Erickson


Credit Suisse (Outperform Rating Initiated, $76 PT)

DraftKings is a leader in the rapidly growing [business-to-consumer] U.S. mobile-sports-betting industry, following the legalization of sports betting in May 2018.

While sports betting is still in its infancy, the early signs point to significant growth, and ... post-covid, states are more incentivized than ever to legalize mobile sports betting as they look to balance their budgets following an extended period of financial stress.

Similar to the expansion of brick-and-mortar casinos following [2008/2009], ... sports betting will see a similar tailwind, and DKNG is best positioned to benefit from it.

-Benjamin Chaiken


Source: The Street, Inc.

https://www.thestreet.com/investing/dra ... +Is+Saying
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Re: DraftKings (DKNG)

Postby winston » Tue Oct 13, 2020 3:13 pm

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DraftKings (DKNG) Could Rebound on Analyst Bullishness

Analysts eye growth for the digital sports entertainment company

By JUSTIN KUEPPER

The relative strength index (RSI) remains neutral with a reading of 52.12, but the moving average convergence divergence (MACD) remains in a bearish downtrend.

These indicators suggest that traders should look for confirmation of a trend reversal before trading the name.

Traders should watch for an ongoing move higher to retest reaction highs of $55.00 or prior highs of nearly $65.00.

If the stock experiences a near-term decline, a bearish head and shoulders pattern could emerge with a neckline at around $50.00.


Source: Investopedia

https://www.investopedia.com/draftkings ... yptr=yahoo
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Re: DraftKings (DKNG)

Postby winston » Tue Oct 13, 2020 3:24 pm

DraftKings Analyst: Stock Could Hit $100 With Legal California Sports Betting

by Chris Katje

“DraftKings has access to only 18% of the population with mobile betting and line of sight opportunity to a few other states.”

California represents 12% of the U.S. population, and along with Texas and Florida, could provide upside for DraftKings, the analyst said.

Credit Suisse's $100 "blue sky" price target for DraftKings accounts for California being added to the mix, he said.


Source: Benzinga

https://finance.yahoo.com/news/draftkin ... 26064.html
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Re: DraftKings (DKNG)

Postby winston » Wed Oct 14, 2020 3:23 pm

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DraftKings: The Bull Case Isn’t Strong Enough… Yet, Says Analyst

DB: Our Hold rating is based on our view that the near- to medium-term items that we believe will move shares are balanced, with some positives and negatives likely to emerge in the coming months and quarters – and in scenarios where 'valuation doesn't matter,' we would prefer a cleaner catalyst path.”

The lack of clarity in the near term is because the “story boils down to the pace of legislation”.

The market, Santarelli says, is anticipating a TAM (total addressable market) of over $20 billion, which means investors are “effectively betting on seamless legislation.”

While Santarelli does not dispute more states coming on board in the coming months and years, the legislation process as evidenced recently in Massachusetts - the state put a hold on legalizing sports betting - is rarely straight forward.

Based on 12 Buys and 6 Holds, the analyst consensus rates the stock a Moderate Buy, with an average price target of $57.35.


Source: TipRanks

https://finance.yahoo.com/news/draftkin ... 19862.html
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Re: DraftKings (DKNG)

Postby winston » Thu Oct 15, 2020 2:56 pm

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Why DraftKings Stock May Be A Riskier Gamble Than You Think

by ADELIA CELLINI LINECKER

Wall Street is hopeful that New York may legalize it as soon as next year.

Younger people are more into esports and video games.

Sports fans don't actually like the games in big stadiums without fans.

The company expects sales and marketing expense of $200 million to $210 million in the third quarter. The figure is considerably higher than the $140 million Needham analyst Brad Erickson estimates for Q3.

Several NFL players have recently tested positive for Covid-19, causing games to be postponed.


Source: IBD

https://www.investors.com/news/draftkin ... yptr=yahoo
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