Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
KIT NORTON

DraftKings, IBD Stock Of The Day: Time To Bet On This Gaming Play?

DraftKings is Thursday's IBD Stock Of The Day, as the sports-gambling portal offers an early entry as it forges a new base. DKNG stock reversed higher Thursday.

The Boston-based sports-gambling enterprise went public with the DKNG ticker in April 2020. DraftKings still hasn't turned a profit, and analysts expecting that to continue until 2026. Institutional investors remain skeptical of DraftKings stock, with nearly 300 funds jumping ship in 2022, according to MarketSmith.

However, sports-betting prospects look strong with around 2o% of U.S. adults saying they bet money on sports in some way in the last 12 months, according to a 2022 Pew Research Center survey. The American Gaming Association reports that commercial betting industry saw record revenue in 2022.

AGA data shows January 2023 revenue from sports betting and iGaming totaled $1.5 billion. Sports betting revenue grew 58% vs. last year while iGaming increased 21% vs. January 2022.

On Feb. 16, DKNG topped fourth-quarter estimates, reporting a smaller-than-expected loss. The company lost 53 cents per share vs. an 80-cent loss a year earlier. Meanwhile, DraftKings Q4 revenue grew 81% to $855 million.

On the year, DraftKings reported a loss of $3.16 per share as revenue grew 73% to $2.24 billion. Analysts see DraftKings revenue growth continuing, averaging an annual increase of 22% through 2026.

Nasdaq Tops 12K, Inflation Data Due; Big Tesla Battery News?

DraftKings Stock

DKNG shares edged up 0.3% to 18.91 in Thursday's market trading.

DraftKings jumped 7.1% on Wednesday, breaking a downtrend as it bounced from its 50-day moving average. Those factors gave DKNG stock an early entry. DraftKings was added to IBD's SwingTrader Wednesday.

From the Dec. 28 low of 10.69, DraftKings stock more than doubled to 21.62 on Feb. 21, shortly after Q4 results.

After Friday, DraftKings stock should have formed a base with a 21.72 buy point.

DraftKings stock ranks fifth in IBD's Leisure-Gaming/Equip industry group. DKNG shares have a 92 Composite Rating out of 99. DraftKings stock has a 96 Relative Strength Rating. The EPS Rating is 45 out of 99.

Please follow Kit Norton on Twitter @KitNorton for more coverage.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.