Here’s why DraftKings Inc. (DKNG) is bullish today on heavy volume
Revenue for the quarter came in at $133 million, up 97 percent from the same period last year, and ahead of consensus forecast of $132 million.
Staff or Guest writer for The Dog of Wall Street.
2020-11-13 12:33

DraftKings Inc. (DKNG) rose more than 3 percent in the mid-day trading Friday after the company announced its financial results for the third quarter that were in line with the consensus forecast. The Boston, MA-based betting company reported an adjusted loss of 57 cents per share for the three-month period ended September 30, narrower than a loss of 61 cents per share forecasted by analysts.

Revenue for the quarter came in at $133 million, up 97 percent from the same period last year, and just ahead of consensus forecast of $132 million. 

Speaking on the quarterly results, CEO Jason Robins said “the resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement. DraftKings recorded an increase in monthly unique payers of 64% to over 1 million, demonstrating the effectiveness of our data-driven sales and marketing approach.”

The company also lifted its sales outlook for 2020, citing return of major leagues and a surge in sports betting. DraftKings expects revenue in the range of $540 million to $560 million for the full year, up from its previous guidance between $500 million and $540 million. 

DraftKings also offered revenue outlook for 2021, projecting revenue in the range of $750 million to $850 million, which translates to a surge of 45 percent on year-over-year basis. 

The company has been rapidly expanding into more states after the 2018 court ruling legalized the sports betting practice. It now operates in 10 states and has manage to secure valuable deals with leading sports and entertainment companies. 

DraftKings Inc. (NASDAQ: DKNG) stock has performed in the recent months. DKNG share price skyrocketed nearly 300 percent so far this year and rose about 62 percent in the past 6 months. 

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-13 12:33

About the Author
Staff or Guest writer for The Dog of Wall Street.

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