After Friday’s earnings call, DraftKings’ stock will soar!

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DRAFTKINGS ($NASDAQ:DKNG): After Friday’s earnings call, DraftKings’ stock is expected to soar. The company has been on a tear lately, posting strong earnings and revenue growth. Analysts are bullish on the stock, and the earnings call is likely to only reaffirm their optimism. DraftKings is a leading player in the booming daily fantasy sports industry, and investors are betting that the company will continue to thrive in the years to come.

Earnings

For the fiscal year 2022 second quarter ending June 30, Draftkings Inc reported total revenue of 1.6 billion dollars. The company also reported a net income loss of 1.6 billion dollars. The company also saw a 23.1% increase in total revenue from the previous year. Over the past three years, Draftkings Inc’s total revenue has increased from 0.6 billion dollars to 1.6 billion dollars.

The company has been able to grow its user base and expand its product offerings. The company’s stock is expected to surge after Friday’s earnings call.

Share Price

On Wednesday, DraftKings’ stock opened at $16.80 and closed at $15.90, down 3.2% from the prior closing price of $16.40. The company’s earnings call on Friday is expected to be very positive, with analysts predicting that the stock will soar afterwards. The company is currently the largest daily fantasy sports site in the world, and is also expanding into other areas such as sports betting. Analysts believe that DraftKings is well-positioned to continue its strong growth in the coming years.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on DRAFTKINGS INC are made simple by VI app. DRAFTKINGS INC is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. DRAFTKINGS INC is strong in growth, medium in asset and weak in dividend, profitability. DRAFTKINGS INC has a low health score of 3/10 considering its cashflows and debt, is less likely to safely ride out any crisis without the risk of bankruptcy.

VI Peers

The competition between online gaming companies is fierce. Here are four of the biggest companies in the industry: DraftKings, Penn National Gaming, Rush Street Interactive, and Churchill Downs. All four of these companies offer online gaming services, but they each have their own unique offerings.

– Penn National Gaming Inc ($NASDAQ:PENN)

As of 2022, Penn National Gaming Inc has a market cap of 4.45B and a Return on Equity of 15.58%. Penn National Gaming Inc is a gaming and racing company that operates in the United States and Canada. The company owns and operates casinos, racetracks, and gaming facilities. Penn National Gaming also offers online gaming and sports betting services.

– Rush Street Interactive Inc ($NYSE:RSI)

Rush Street Interactive Inc is a gaming company that develops and operates online casino and sports betting platforms. The company has a market cap of 221.64M as of 2022 and a Return on Equity of -113.0%.

The company’s market cap is relatively small compared to other gaming companies, but its ROE is negative, meaning that it is not generating profit from its equity. The company’s main source of revenue is from its online casino and sports betting platforms.

– Churchill Downs Inc ($NASDAQ:CHDN)

Churchill Downs Incorporated is an American gambling and racing company based in Louisville, Kentucky. The company is best known for operating the famous Kentucky Derby, as well as the TwinSpires online betting platform. Churchill Downs also owns and operates several other racing venues and casinos across the United States.

The company has a market capitalization of $7.35 billion as of 2022 and a return on equity of 105.84%. Churchill Downs is one of the leading gambling and racing companies in the United States, with a strong presence in both the online and offline gaming markets. The company’s strong financial performance is driven by its diversified portfolio of gaming assets and its ability to generate strong cash flows from its operations.

Summary

If you’re looking for exposure to the burgeoning legal sports betting industry, then DraftKings is a stock you should consider. The company is a leading provider of online sports betting and gaming products, and with the industry still in its early stages of growth, there is plenty of room for DraftKings to continue expanding its operations and market share. The company has already made significant inroads in the U.S. market, and with more states legalizing sports betting, DraftKings is well positioned to continue growing its business.

In addition, the company has been proactive in expanding its product offerings beyond just sports betting, into areas such as online casino gaming and daily fantasy sports. This diversification will help DraftKings mitigate any potential slowdown in the growth of the sports betting industry and continue growing its top and bottom line. So if you’re looking for a stock to benefit from the growth of the legal sports betting industry, then DraftKings is definitely worth considering.