Online gambling company DraftKings reports strong Q1 results, stock could climb back to 2021 peak
August 5, 2022
Trending News ☀️
DraftKings Intrinsic Value – DraftKings ($NASDAQ:DKNG) is an online gambling company that is scheduled to announce their Q2 earnings results on Friday, August 5th, before market open. The company’s stock has declined over -80% from their 2021 peak and nearly -41% in the year to date, with price returns lagging behind their peers.
However, in the weeks leading up to their earnings release, JMP Securities suggested the stock could easily climb back to those heights as gambling opens up across the country. The online gambling company’s Q1 revenue was up 34%, led by a 44% increase in the B2C segment. Although there is some investor concern that consumers could cut back with discretionary spending on sports betting if the economy enters a recession late in 2022 or 2023, DraftKings reported strong demand across segments and said they are not seeing any inflationary pressures reflected in customer behavior. The firm is live with mobile sports betting in 17 states that collectively represent approximately 36% of the US population. Do you think this will affect DRAFTKINGS market and earnings in the long term?
Market Reaction
Following the news media exposure mostly are positive. on Thursday, DRAFTKINGS stock opened at $16.9 and closed at $16.4.
VI Analysis – DraftKings Intrinsic Value
Company’s fundamentals reflect its long term potential, below analysis on DRAFTKINGS are made simple by VI app. DraftKings Intrinsic Value is around $54.97, calculated by VI Line. Now DRAFTKINGS stock is traded at $20.67, undervalued by 61.4%. DraftKings, Inc. is a digital sports entertainment and gaming company created to fuel the competitive spirits of sports fans with products that range across daily fantasy sports, regulated gaming and digital media. Based in Boston, MA, with offices around the globe, the company is committed to creating the industry’s most innovative experiences and to doing so responsibly.
Summary
Investing in DraftKings could be a good idea for investors who are looking for exposure to the online gambling industry.
