Latest news with #DraftKings'
Yahoo
6 days ago
- Business
- Yahoo
DraftKings Stock Price Levels to Watch After Illinois Sports Betting Tax Approved
DraftKings shares rebounded on Tuesday from a steep decline the previous session that followed news Illinois lawmakers had passed a budget that includes a new sports betting tax. The stock broke down below the bottom trendline of a flag pattern in Monday's trading session, potentially setting the stage for further selling. Investors should watch crucial support levels on DraftKings' chart around $29 and $23, while also monitoring vital resistance levels near $39 and $ (DKNG) shares rebounded on Tuesday from a steep decline the previous session that followed news Illinois lawmakers had passed a budget that includes a new sports betting tax. The budget includes a new provision taxing every sports bet made in Illinois by 25 cents for the first 20 million wagers a company takes and 50 cents for each bet past that threshold. Citi analysts on Monday estimated that DraftKings would have been subject to roughly $68 million in additional taxes if the new tax had been in effect over the last 12 months. Shares of the company are down 8% since the start of the year, lagging the performance of the benchmark S&P 500 index, amid increasing competition among sports betting companies. The stock rose 1.8% to $34.32 on Tuesday, after dropping 6% the day before. Below, we take a closer look at DraftKings' weekly chart and apply technical analysis to point out crucial price levels that investors will likely be watching. After finding buying interest around the 200-day moving average (MA), DraftKings shares rallied within a bearish flag before encountering resistance near the 50-day MA. Since that time, the stock has continued to track lower, with the price breaking down below the flag's bottom trendline in Monday's trading session, potentially setting the stage for further selling. However, it's worth noting that the stock's recent weakness has occurred on declining volume, indicating that retail investors rather than larger market participants have driven the price action. Let's identify several crucial support and resistance levels on DraftKings' chart worth watching. The first lower level to watch sits around $29, an area on the chart where the shares may attract support near last year's prominent August trough. A close below this level opens the door for a more significant drop to lower support around $23. Investors may seek buying opportunities in this region near the February 2022 countertrend peak and the lower range of a brief consolidation period that formed on the chart in May 2023. Interestingly, this level also sits in the same neighborhood as a projected bars pattern target that takes the sharp trend lower that preceded the flag and repositions it from the pattern's top trendline, providing insight into how a potential continuation move lower may play out. During recovery efforts in the stock, investors should initially monitor the $39 level. The shares may encounter resistance in this area near last month's high and the 50-day MA, which also closely aligns with several peaks and troughs on the chart stretching back to November last year. Finally, buying above this level could see DraftKings shares climb toward $47. Investors who have bought at lower prices may seek exit points in this area near a series of corresponding prices situated just below last year's March peak. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
USA Today
12-05-2025
- Sport
- USA Today
Is Cooper Flagg playing at 2025 NBA draft combine? What to know about top pro prospect
Is Cooper Flagg playing at 2025 NBA draft combine? What to know about top pro prospect Cooper Flagg and the rest of the XX players at the 2025 NBA Draft Combine are expected to go through on-court testing, measurements and medical exams. But participating in scrimmages is optional. Show Caption Hide Caption NBA 2nd-round playoff upsets provide betting value DraftKings' Johnny Avello describes how bettors are reacting to the NBA playoffs 2nd round upsets. The NBA converges on Chicago this week as the league's offseason starts to kick into gear even as eight teams remain in the playoffs. After Monday's NBA draft lottery, the NBA Draft Combine begins in full and predicted No. 1 pick Cooper Flagg and the rest of the best prospects ahead of June's 2025 NBA draft are expected to be on hand at Wintrust Arena. They'll be put through medical testing, measurements and drills on the court, and meet with reporters and teams as part of the annual event, which is not open to the public. Some of the players at the 2025 NBA Draft Combine, including five who earned a spot through strong performances at the G League Elite Camp held in Chicago last weekend, are also split into four teams for two days of scrimmages. Participation in the scrimmages is considered optional, according to the NBA's collective bargaining agreement, and top picks like Flagg don't often take part. But there are plenty of examples of players who improved their draft stock by impressing scouts at the combine. The next few days can often influence decisions will trickle down effects to the college ranks, as an encouraging or discouraging performance this week could dictate if a prospect stays in the draft or returns to school. What did Flagg elect to do? Here's the latest on what the NBA Draft Combine is shaping up to be for the presumptive No. 1 pick, as well as a tentative schedule of events, information on how to watch the combine and updated team rosters for the scrimmages: NBA ON NBC UPDATE: NBC says Michael Jordan will join network's coverage as a special contributor Is Cooper Flagg playing at the 2025 NBA Draft Combine? It's unclear exactly what Flagg will choose to do at the NBA Draft Combine, as of Monday afternoon, but every prospect is expected to attend and participate in drills, interviews and medical examinations. It appears, however, Flagg does not plan to participate in the 5-on-5 scrimmage aspect scheduled for Wednesday and Thursday at Wintrust Arena. Flagg was not included on any of the four team rosters released by the NBA on Monday morning. He's not alone, either. Most of the potential lottery picks in this year's draft class appear to be bypassing the scrimmages, which is traditionally the case as well. Cooper Flagg stats: Where he stands in latest NBA mock draft Cooper Flagg is projected to be the No. 1 pick in the latest USA TODAY Sports NBA mock draft ahead of the start of the combine and the 2025 NBA draft lottery. Here are some Cooper Flagg's notable stats and achievements during his freshman season at Duke: Listed at 6-9, 205 pounds Won multiple national player of the year awards 2025 ACC player and rookie of the year (fourth player in conference history to accomplish the feat) Averaged 19.2 points, 7.5 rebounds, 4.2 assists, 1.4 steals, 1.4 blocks at Duke with shooting splits of 48.1% FG, 38.5% 3PT, 84% FT 2025 NBA Scouting Combine schedule 2025 Note: The NBA Scouting Combine is not open to the public and only the events/activities taking place on Tuesday, May 13 through Thursday, May 15 are open to the media. All times listed are Eastern. Tuesday, May 13 Strength and agility testing Shooting drills Wednesday, May 14 Media availability Scrimmage : Team Lazare vs. Team Domercant, 2:15 p.m. : Team Lazare vs. Team Domercant, 2:15 p.m. Scrimmage: Team Williams vs. Team Mueller, 4:15 p.m. Thursday, May 15 Scrimmage : Team Lazare vs. Team Mueller, 2:15 p.m. : Team Lazare vs. Team Mueller, 2:15 p.m. Scrimmage: Team Williams vs. Team Domercant, 4:15 p.m. Where to watch NBA draft combine 2025: TV channel, live streaming update The 2025 NBA Draft Combine will be broadcast nationally by ESPN2 on Wednesday, May 14 beginning at 2 p.m. ET in conjunction with the start of 5-on-5 scrimmages at Wintrust Arena in Chicago. The action can also be live streamed via ESPN+, Disney+ and Fubo. Watch the NBA Draft Combine with Fubo NBA Scouting Combine 2025: Rosters, teams for scrimmages Team Domercant PG Boogie Fland, Arkansas SF R.J. Luis Jr., St. John's C Hansen Yang, Qingdao (China) SG Alijah Martin, Florida SF Jalon Moore, Oklahoma SG Dink Pate, Mexico City (G League) PF Yaxel Landeborg, UAB/Michigan SG John Tonje, Wisconsin SF Darrion Williams, Texas Tech PF Mackenzie Mgbako, Indiana Team Mueller PG Mark Sears, Alabama SG Koby Brea, Kentucky SG PJ Haggerty, Memphis PG Kam Jones, Marquette SF Jamir Watkins, Florida State C Izan Almansa, Perth (Australia) SF Karter Knox, Arkansas PF Michael Ruzic, Joventut (Spain) SG Max Shulga, VCU PF Lachlan Olbrich, Illawarra (Australia) Team Lazare SG Miles Byrd, San Diego State PG Tahaad Pettiford, Auburn C Yanic Konan Niederhauser, Penn State SG Hunter Sallis, Wake Forest SF Kobe Sanders, Nevada PG Javon Small, West Virginia PF Eric Dixon, Villanova C Vladislav Goldin, Michigan SG Otega Oweh, Kentucky SF Alex Toohey, Sydney (Australia) Team Williams
Yahoo
08-05-2025
- Business
- Yahoo
DraftKings (NASDAQ:DKNG) Reports Sales Below Analyst Estimates In Q1 Earnings
Fantasy sports and betting company DraftKings (NASDAQ:DKNG) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 19.9% year on year to $1.41 billion. The company's full-year revenue guidance of $6.3 billion at the midpoint came in 1.1% below analysts' estimates. Its non-GAAP profit of $0.12 per share was in line with analysts' consensus estimates. Is now the time to buy DraftKings? Find out in our full research report. Revenue: $1.41 billion vs analyst estimates of $1.45 billion (19.9% year-on-year growth, 3.1% miss) Adjusted EPS: $0.12 vs analyst estimates of $0.12 (in line) Adjusted EBITDA: $102.6 million vs analyst estimates of $98.92 million (7.3% margin, 3.8% beat) The company dropped its revenue guidance for the full year to $6.3 billion at the midpoint from $6.45 billion, a 2.3% decrease EBITDA guidance for the full year is $850 million at the midpoint, below analyst estimates of $910.4 million Operating Margin: -3.3%, up from -11.8% in the same quarter last year Free Cash Flow was -$152.9 million compared to -$73.42 million in the same quarter last year Monthly Unique Payers: 4.3 million, up 900,000 year on year Market Capitalization: $17.33 billion 'Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment,' said Jason Robins, DraftKings' Chief Executive Officer and Co-founder. Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, DraftKings's 61.7% annualized revenue growth over the last five years was incredible. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers, a helpful starting point for our analysis. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. DraftKings's annualized revenue growth of 38.9% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. This quarter, DraftKings's revenue grew by 19.9% year on year to $1.41 billion but fell short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 34.1% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is healthy and suggests the market sees success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. DraftKings's operating margin has risen over the last 12 months, but it still averaged negative 11.6% over the last two years. This is due to its large expense base and inefficient cost structure. It might have a shot at long-term profitability if it can scale quickly and gain operating leverage. In Q1, DraftKings generated a negative 3.3% operating margin. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. DraftKings's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point. In Q1, DraftKings reported EPS at $0.12, up from $0.03 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects DraftKings's full-year EPS of $0.31 to grow 436%. It was encouraging to see DraftKings beat analysts' EBITDA expectations this quarter. On the other hand, its revenue missed and it lowered its full-year revenue and EBITDA guidance. Overall, this was a softer quarter, but the stock traded up 2.3% to $36.23 immediately after reporting. Should you buy the stock or not? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-04-2025
- Business
- Yahoo
DraftKings' revenue cyclicality and operating leverage are medium.
Investment Thesis Because of its technology and product offerings, DraftKings, a well-known online gaming company in the US, has a strong brand advantage. Launching new products and leveraging customer data are made possible by the company's in-house technology platform, which was acquired in 2020. Because of its solid financial standing, DraftKings is able to devote more funds to building its brand. With FanDuel controlling the majority of revenue, the company has expanded its dominant daily fantasy sports position into one of the top spots in the North American sports betting and iGaming market. Despite regulatory changes like tax rate adjustments, postponing legalization, and restricting market access, DraftKings' financial situation is anticipated to improve. Market scale leaders like Flutter have maintained their strong revenue shares and profitability despite the developed gaming markets in the UK and Australia, giving DraftKings hope for success in the US over the coming ten years. Around 40 states currently allow sports betting and iGaming, and seven more will follow in the coming years as governments take advantage of the tax money brought in by the expanding industries. Early in the next decade, the North American sports betting and iGaming market is predicted to generate over $40 billion in revenue. Warning! GuruFocus has detected 4 Warning Signs with DKNG. Notable Guru Holdings Baillie Gifford (Trades, Portfolio) 4 DraftKings transactions (Baillie Gifford (Trades, Portfolio) & Co _.png" data-href="" style=""/> Steven Cohen (Trades, Portfolio) 14 DraftKings transactions (Point72 Asset Management _.png" data-href="" style=""/> Investment Upsides Due to its early mover advantage in daily fantasy sports, DraftKings, a well-known online sports and iGaming betting company, has significantly increased its market share. With more than 30% of the market, the company is the second-largest revenue sharer in the states where it competes. This job is ideal for getting sports betting licenses, particularly in states where only physical retail gaming operators are granted multiple licenses. There are 25 states where you can access DraftKings' online service. With DraftKings and FanDuel controlling roughly 20%25% of Michigan's iGaming market, DraftKings also enjoys a strong competitive position. The mid-single-digit percentages held by Caesars, BetRivers, and Golden Nugget (an online business owned by DraftKings) are dwarfed by these top three players. DraftKings is making wise investments in technology, assets, and products to guarantee that its brand's intangible asset edge lasts. One example of this is the 2020 acquisition of SB Technology, which gave the gaming operator an internal platform. Because it gives businesses the ability to leverage customer data and introduce new product offerings, vertically integrated technology is crucial for bolstering competitive advantages in the market. In 2024, DraftKings' structural sports hold rate increased by 70 basis points to 10.5% thanks to its new parlay products and technological platform. Golden Nugget's casino customer database and online iGaming offering were acquired by DraftKings in 2022 following the SB Technology acquisition, which further reduced the cost of acquiring new customers. DraftKings' revenue per marketing dollar increased from $1.24 in 2020 to $3.77 in 2024, despite a decrease in marketing expenditures on unique users. In 2024, the company's adjusted EBITDA and free cash flow turned positive, and it has a net cash position with an unutilized $500 million credit facility. With its online sports betting revenue share staying in the high 20s and its 2024 adjusted EBITDA margin increasing to 3.8% from a loss of 4.1% in 2023, DraftKings' critical mass US digital revenue share is proving resilient in the face of competition. Other smaller digital scale competitors have folded because it is too difficult to replicate DraftKings' competitive advantage. Unlike the US, Australia has a thriving sports betting market with many online operators, having legalized sports betting in 1983. Australia has more stringent gaming laws that forbid in-game online sports betting, physical casinos, and online gaming. Advertising bans during sports and between 5:00 am and 8:30 pm are in place since 2019, with politicians considering a full outright ban. It is forbidden to use credit cards for both online and offline gambling. Additionally, Australia raised its gaming tax from 15% to 20% in 20222023, with territories accounting for roughly 50% of the country's total the tax rate in the Victoria region was raised from 10% to 15%. Notwithstanding these difficulties, Flutter's adjusted EBITDA margins in the Australian segment remained at 25% in 2023, and it is anticipated that they will eventually stabilize in the low-20s while retaining its dominant market share. DraftKings can sustain its brand advantage in the region despite possible US regulatory policies; adjusted EBITDA margins are predicted to increase from negative 4% in 2023 to 29% by 2034. Intrinsic Valuation DraftKings' stock is modestly undervalued with a target share price of $46.04. This is primarily driven by lower intermediate-term marketing expenses. This suggests that revenue, marketing expenditures, and product and technology costs will drive an enterprise value/adjusted EBITDA multiple of 26 times our 2025 estimate. Investors have a positive outlook for 2025 due to DraftKings' strong underlying momentum, even with lower 2024, DraftKings saw a 40% increase in hold parlay activity during the Super Bowl and a record $436 million in wagers. In Q4 2024, the company's structural hold increased 80 basis points to 11.2% as a result of increased NFL parlay activity. DraftKings' customer base grew by 3.5 million in 2024, reaching 10.1 million. This indicates that DraftKings' marketing as a percentage of sales may approach 12% over the next ten years, highlighting the company's intangible asset advantage. Because of its industry-leading risk management tools and product offerings that enable an improved user experience, DraftKings is viewed favorably over the long run. Even though the company's customer acquisition costs decreased by 26% in 2024, its average monthly user growth was 37%. Over the next ten years, revenue growth is anticipated to average 12%. Over the next ten years, marketing as a percentage of sales is anticipated to average 15%, with product and technology accounting for an average of 6% of sales from 2025 to 2034. It is anticipated that operating margins will increase from negative 21.5% in 2023 to 20.2% by 2029. During 20252034, capital expenditures are expected to average 3% of sales. Investment Downsides The US gaming industry is experiencing a cyclical downturn as a result of terrorism attacks, slower economic growth, and outbreaks like the coronavirus. In 2020, the pandemic caused a 31% drop in gaming revenue. Political factors could affect DraftKings' opportunity and inherent value by delaying or preventing the legalization of sports betting and iGaming wagers. In order to meet budgetary constraints, states may also raise taxes on internet gambling, which could lower gaming companies' earnings. Companies' revenue share and profitability can be affected by promotional activity. By incorporating in-house technology and purchasing customer data from Golden Nugget, DraftKings has strengthened its position. Competitors can, however, improve their media, data, and technology offerings. Risks to DraftKings' environment, society, and governance include gambling addiction, which may increase government regulations and impact demand. To avoid mistrust, customer data must be protected. Portfolio Management With a net cash position of $74 million in 2024, DraftKings has a medium level of operating leverage and revenue cyclicality. The total amount of debt held by the company is low, with an estimated 2025 adjustment of 1.3 times. The 2020 acquisition of SB Tech, the 2024 partnership with Barstool, and the 2024 acquisition of online lottery provider Jackpocket are all part of DraftKings' investment strategy. In 2023, DraftKings' gross gaming revenue increased by 53% as a result of the acquisition of Jackpocket, which had a customer database of 6 million users, 1.8 million of whom were paying customers. With Jackpocket's customer acquisition cost being 80% less than its current business, this acquisition and cross-sell opportunity gave DraftKings a new way to attract new clients. The distributions made to shareholders by DraftKings are reasonable, with an emphasis on reinvesting in the company to maintain its competitiveness. While share repurchases are anticipated to become a more significant component of capital allocation in the second half of this decade, dividends are not a top priority. It is prudent for repurchase activity to take place below the company's intrinsic value. This article first appeared on GuruFocus. Sign in to access your portfolio
Forbes
09-04-2025
- Business
- Forbes
DKNG Stock At $32: Buy, Sell, Or Hold?
BOSTON, MA - MARCH 20: A view of the DraftKings Sportsbook logo on the boards during the Hockey East ... More semifinal game between the Boston University Terriers and the UConn Huskies on March 20, 2025, at TD Garden in Boston, MA. (Photo by Erica Denhoff/Icon Sportswire via Getty Images) DraftKings, a top digital sports entertainment and gaming company, has seen its stock decline by 14% over the past month, driven by a broader market downturn linked to tariffs imposed by Trump on key trading partners and growing tensions from the U.S.-China trade war. Our take on the market crash risk right now offers more insights into the tariff situation and its effects on the broader economy. We think DraftKings stock, currently trading at $32, represents a solid buying opportunity. Based on our evaluation, the stock's fair valuation reflects only minor concerns, especially considering its strong operational results and solid financial position. We came to this conclusion by comparing DKNG's current market valuation with its recent and historical operating performance and financial standing. The assessment below covers key metrics such as Growth, Profitability, Financial Stability, and Downturn Resilience, all of which point to the company's inherent strength. When comparing valuation in terms of price per dollar of revenue or profit, DKNG stock is currently valued similarly to the overall market. DraftKings' Revenues have experienced strong growth over the past few years. DraftKings' profit margins remain significantly lower than most other companies in the Trefis universe. DraftKings has a healthy balance sheet. DKNG stock has performed slightly better than the S&P 500 during recent downturns. As investors hope for a soft landing in the U.S. economy, it's worth asking—how severe could the impact be if another recession hits? Our dashboard How Low Can Stocks Go During A Market Crash explores how major stocks have performed during and after the last six market crashes. To summarize, DraftKings' performance across various indicators is as follows: Given DraftKings' solid performance on these fronts—which we believe is not fully captured in its current fair valuation—we see the stock as a compelling buying opportunity. In fact, analysts' average price target of $57 for DKNG suggests a strong 75% upside from current levels. While DKNG stock may see higher levels, the Trefis Reinforced Value (RV) Portfolio, has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics. DKNG Return Compared With Trefis Reinforced Portfolio Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
