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However, that estimate is now baked into the shares, indicating the operator likely needs to raise that guidance to get investors excited. That’s possible, but in its brief history as a publicly traded firm, DraftKings’ earnings track record is spotty.<\/p>\n<\/div>\n
\u201cIn recent history, DKNG has not fared well on the earnings front. In fact, DraftKings missed expectations on all four of its most recent earnings reports,\u201d notes Schaeffer’s. \u201cHowever, two of those post-earnings reactions were to the upside; a 6.4 percent pop in February and a 3.9 percent rise in November.\u201d<\/p>\n
Reasons to Like DraftKings Stock<\/h2>\n
Much of investors’ enthusiasm for DraftKings revolves increasing state-level legalization of internet casinos and sports betting, and the subsequent revenue boost that comes along with a more hospitable revenue environment. Indeed, the company’s top line is rapidly expanding. But that comes at a cost.<\/p>\n
\u201cThe growth potential is massive for DraftKings. The company is already expanding at a rapid rate, with revenues up approximately 340 percent since fiscal 2017,\u201d says Schaeffer’s.<\/p>\n
However, the digital sports entertainment company is still far away from profitability, with trailing 12-month net income coming in at a jaw-dropping -$1.12 billion,”<\/strong> Schaeffer’s continued.<\/p><\/blockquote>\nOn the plus side, DraftKings has $2.82 billion in cash, more than double its $1.33 billion in debt. Additionally, the company is expanding beyond its core businesses, showing a willingness to acquire media properties and expand into digital assets,<\/a> among other ventures.<\/p>\n","protected":false},"excerpt":{"rendered":"Residing 32 percent below its March highs, DraftKings (NASDAQ:DKNG) stock isn’t the scintillating name it once was. But some market observers believe the online sportsbook operator can get its momentum back. Ahead of the company’s Aug. 6 earnings report, there are signs the stock is perking up. From its July lows around $42, DraftKings rebounded […]<\/p>\n","protected":false},"author":46,"featured_media":181306,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\n
DraftKings Stock Can Rebound After Earnings, Says Research Firm<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n