Buy signal on Draftkings (DKNG-US)
Draftkings is a $24.2 Bn market cap and a digital sports entertainment and gaming company. The Company’s B2C segment provides users with daily fantasy sports (DFS), sports betting (Sportsbook) and online casino (iGaming) products. It also offers users a single integrated product that provides one account, one wallet, a centralized payment system and responsible gaming controls. The Company operates its B2C segment primarily in the United States. Draftkings B2B segment is involved in the design, development and licensing of sports betting and casino gaming software for its Sportsbook and casino gaming products. The operations of its B2B segment are concentrated mainly in Europe, Asia, and United States.
DraftKings saw massive increases in paid users (4x yoy) to 1.12 million and revenue growth (+27%) in Q2, leading the company to increase its full-year guidance. Its acquisition of Golden Nugget and its plans to launch DraftKings Marketplace are evidence of the company using its substantial brand to increase its market size. Media also presents an interesting opportunity for DraftKings to earn reliable advertising and subscription fees.
Draftkings is expected to grow its revenue by 109% in 2021 to $ 1.29 Bn and by 37% in 2022 to $ 1.77 Bn. The operating loss is expected to narrow progressively from $ -1.1 BN in 2021 to $ -449 Mn in 2023.
Short term catalyst : Huge paid users growth, Golden Nugget acquisition.
This signal looks mainly company specific.