DraftKings (DKNG)

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Following a month of mega deals, including linking with sports icon Michael Jordan, sports betting company DraftKings (DKNG) agreed to another media partnership; this time with AT&T's WarnerMedia property, Turner Sports.

Source: CNBC

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DraftKings Signs Latest Media Deal, With Turner Sports

DraftKings reached its latest partnership. The sports-gambling company will produce content for Turner Sports' telecasts and apps.

by TONY OWUSU

Terms weren't disclosed.

The multiyear deal will see DraftKings provide sports-betting information and daily fantasy content across Turner Sports telecasts and Bleacher Report's digital channels as well as the B/R app.

The deal excludes National Basketball Association programming.

The agreement includes integrations that will feature custom content segments, DraftKings' betting odds and daily fantasy statistics, original content, personalized automated alerts and editorial across the Turner Sports network.

“While this emerging industry continues to evolve, sports betting helps to drive engagement, increased time spent viewing and audience scale,” said Turner Sports Executive Vice President Will Funk.

DraftKings has had a busy few weeks, announcing multiple deals with the National Football League and media broadcast partners as the company looks to keep its market-share lead amid competition from rivals FanDuel and the Barstool Sports app.

Earlier this week DraftKings was the subject of at least four mostly bullish analyst notes as the company's brand presence is boosted by its pro league partnerships.

Oppenheimer affirmed its outperform rating while raising its price target to $65 a share from $55. Deutsche Bank initiated DraftKings with a hold rating and $48 price target.

Needham affirmed its buy rating and $70 price target, and Credit Suisse initiated coverage at outperform with a $76 price target.

Source: TheStreet, Inc.

https://www.thestreet.com/investing/dra ... ner+Sports

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DraftKings: Time To Assess Valuation As Sports Schedules Play Out To Year's End

by Howard Jay Klein

Summary

As the only pure play in sports betting, DKNG belongs in any well balanced gaming portfolio. But at what price?

It's one of 6 sports betting apps that have relatively modest public awareness levels given their high visibility.

All DKNG's partnership deals, as is the case with their competitors, are expensive but have no proven value yet.

More states will legalize. There are now 16 states where sports betting has been legalized and/or pending full implementations.

The big kahuna states remain problematical but possible upstream at this point: New York (limited upstate only), California, Texas, among others.

What shares of market can the 6 to 12 major players in the space ultimately achieve?

One scary prospect for the value of these deals is the current collapse of TV sports ratings: NBA Finals down 50%, US Open, down 40%, Kentucky Derby down 43%, Stanley Cup Finals down 61%, MLC down 40%.

Source: Seeking Alpha

https://seekingalpha.com/article/437965 ... ent=link-0

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DraftKings: 3 Positive Takeaways From the Turner Partnership

1. “Bleacher Report is an underrated sports media asset.” It is currently second only to ESPN in Instagram and Twitter followers and is the 22nd most used sports app in the iOS app store.

2. Turner “has strategic sports rights.” The analyst explained, "While the deal excludes NBA content given their existing partnership with FanDuel, Turner owns a portion of the rights for NCAA tournament games through 2032 and the MLB which Turner recently renewed through 2028."

3. Media companies’ increasing acceptance of sports betting should “help grow market adoption and potentially legislation.”

Source: TipRanks

https://finance.yahoo.com/news/draftkin ... 31959.html

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DraftKings Falls as Lockup for Secondary Offering Expires

DraftKings falls after the lockup from the online sports betting platform’s secondary offering in June ends.

by DAN WEIL

A 1.7 million-share block was dumped on the market in premarket trading, Bloomberg reported. The block was priced at $42.15 share, 5% beneath Monday’s close of $44.58.

That gave the block a $71.7 million value. The trade accounts for 0.6% of DraftKings’ total shares available for trading, according to Bloomberg. DraftKings has about 380 million shares outstanding.

Source: The Street

https://www.thestreet.com/investing/dra ... ng+Expires

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DraftKings Stock Is Finally Giving Us a Buyable Dip

DraftKings stock will heat back up again eventually

By Matt McCall

The company reported it had more than $1.2 billion in cash and no debt. Earlier in the year, it noted that its monthly cash burn would only be in the $15 million to $20 million range without major sports action.

However, we can add even more cash to the equation now. On Oct. 7, DraftKings sold 32 million shares at $52, raising over $1.6 billion in cash.

Consensus estimates call for just over $526 million in revenue this year and about $770 million next year. If both numbers are in-line, that represents over 46% growth.

By 2025, 96% of the US population will have access to legal OSB. (?)

DraftKings would be “posting revenue of $535 million this year and topping $1 billion in 2022 before ascending to $4.3 billion in 2030.”

Source: Investor Place

https://investorplace.com/moneywire/202 ... h=nonbuyer

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DraftKings has been on fire

Online sports betting has exploded this year with new regulations in many states allowing sports betting and the inability for fans to go to games.

DKNG was trading for $12.69 the day the last stimulus deal was announced.

Today, it sits at $43.40, for a juicy return of 242% for investors.

The best part is, the stock is actually on sale now, down from its all-time high of $64.19 earlier this month.

We think the stock could be worth $100 or more over the next 24 months thanks to the current relaxed regulations combined with the continued expansion of states allowing sports gambling.

It’s already legal to gamble on sports in 19 states. Virginia, North Carolina, Tennessee, and Washington state recently passed new bills that would allow it – so that brings the total to 23.

And nine others, including Vermont, Massachusetts, Maryland, Ohio, Louisiana, Kansas, Nebraska, South Dakota, and Hawaii, have it on their 2020 voting ballots.

By the end of the 2020 elections, we could have as many as 32 legal sports gambling states.

Source: Money Morning

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Gambling Stocks to Buy: DraftKings (DKNG)

DraftKings is the most widely known iGaming platform in America, with over 12 million registered accounts and over 500,000 monthly active players.

Indeed, the company has become a household name among sports households for Daily Fantasy Sports and online sports betting.

Importantly, size matters in the iGaming market, because:

1. DraftKings’ bigger-than-peer size equals more widespread brand awareness. The company can leverage more widespread awareness to attract more first-time DFS players and sports betters as the market grows.

2. Size unlocks built-in network effects. Since DFS is inherently social, consumers are going to want to play DFS with friends. Given DraftKing’s already huge size, chances are high that most sports fans have at least one person in their friend group who is on DraftKings. So, when new players enter the market, they will likely enter through DraftKings thanks to these network effects.

3. Bigger size also equals bigger prize money. At the end of the day, we bet on sports and card games because we want to win more money. DraftKings — as the biggest company in the iGaming market — can also offer the biggest prize money to players. Naturally, this will attract more players, which will lead to more size, bigger prize money, and then even more players. It’s a positive growth flywheel.

4. More size means more resources, which means better technology. The bigger DraftKings gets, the more money the company will make, the more money the company will be able to raise, and the more money the company will have to deploy to technology. Thus, for the foreseeable future, bigger size should enable DraftKings to have a more technologically advanced platform than peers, which should improve playability and attract more players.

All in all, then, DraftKings projects as the market’s leading virtual DFS and sports betting platform for the foreseeable future. That’s big, because the global sports betting market today measures north of $70 billion, with a bunch of those dollars migrating into online sports betting platforms like DraftKings.

DraftKings’ market cap today sits around $19 billion. Long-term, then, DKNG stock has compelling upside potential.

Source: Investor Place

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It’s Time to Pounce on This Stock

by Matt McCall

Sales are expected to soar from $535 million this year to as high as $4.3 billion by 2030.

And, with the company’s rock-solid balance sheet (over $1.2 billion in cash, no debt), there’s plenty of dry powder in its war chest to fuel this epic growth.

Source: InvestorPlace

https://dailytradealert.com/2020/10/29/ ... his-stock/

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Earnings Reports to Watch: DraftKings (DKNG)

Earnings Report Date: Friday, Nov. 13, before market open

Online gambling stocks of all kinds have been pandemic winners, but of late the optimism has cooled.

DKNG stock itself cleared $60 at the beginning of October; even with a rally in the last few sessions, it closed Thursday at $43.

To be sure, the news still is awfully positive. DKNG stock is up nearly 300% this year. But with the stock trading about where it did at the beginning of June, this looks like a potentially pivotal report.

Sports betting initiatives saw a number of wins on Tuesday during the election night. A base of stuck-at-home Americans should have driven strong user acquisition and wagering figures in the third quarter.

That said, DraftKings needs to post a big quarter. The good news is that it probably will. From there, the question becomes how investors react.

Given the steep rally so far this year, and the pullback of the last few weeks, the reaction to DraftKings earnings might signal where investors stand on the “growth versus valuation” argument.

That signal should be exceedingly useful with a host of high-multiple software companies on the earnings calendar over the next couple of weeks.

Source: Investor Place