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Why DraftKings is Poised for a Major Comeback
A really sticky customer base delivers deep profits
George Babis
August 28, 2024
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DraftKings ($DKNG), a key player in the SPAC listing boom of 2020, has become a standout in the iGaming and online sports betting market. Unlike many other SPAC-listed stocks that have faced significant losses or been delisted, DraftKings stock has more than tripled in value. However, as of now, the stock is experiencing a consolidation phase, down 29% from its 52-week highs.
While the company exceeded estimates in the most recent quarter and significantly raised its full-year revenue outlook, it lowered the profitability forecast for the year, causing shares to tumble over 10% post-earnings.
Since the post-earnings dip, DraftKings stock has recovered nicely, driven by solid fundamental performance and promising future prospects. Despite the recent volatility, DKNG stock remains reasonably valued and offers significant upside potential for investors. Let’s see why.