In its latest earnings release, DraftKings Inc. (DKNG) raised its revenue guidance for 2023 to $2.85-$3.05 billion from $2.8-$3 billion it announced in November. This followed soon after it became the most downloaded sportsbook app in the U.S. on Super Bowl Sunday while benefiting from increased sales from newly legal betting.
However, DKNG’s financial statements suggest that its top-line growth may not translate to improvement in its bottom-line performance. I think the stock is best avoided now for reasons discussed throughout this article.
