(VIANEWS) – DraftKings stock increased 17.46% on Friday, continuing its upward trajectory. The company’s shares closed at EUR34.04 from their previous close of EUR28.98; this recent rise puts DraftKings stock within striking distance of its 52-week high price of EUR34.49 and shows positive market momentum overall: NASDAQ gained 1.43% to EUR13,484.01, following five straight sessions of gains.
About DraftKings
DraftKings Inc. is a digital sports entertainment and gaming company founded in 2011. Offering multi-channel sports betting technologies to operators worldwide, DraftKings operates its iGaming under its DraftKings brand in five US states as well as Golden Nugget Online Gaming in three. Sportsbook live in 18 US states (mobile/retail betting operations); daily fantasy sports product available in 6 countries (15 different sports categories); DraftKings Marketplace provides digital collectibles ecosystem; as well as Vegas Sports Information Network (VSiN). Established in 2011, DraftKings has its headquarters headquartered in Boston Massachusetts since then.
Yearly Analysis
DraftKings’ stock is currently trading at EUR34.04, below its 52-week high of EUR34.49 but significantly above its 52-week low of EUR10.69. This suggests a strong comeback over the past year – but investors should keep in mind that its current valuation may be excessively expensive.
DraftKings is expected to see significant sales growth of 57.7% this year and 21.4% next year, as measured by its EBITDA, or operating profitability indicator. Unfortunately, however, DraftKings currently operates at an operating loss – which may cause alarm among some investors.
Before making investment decisions regarding DraftKings, investors should carefully assess its current valuation and financial performance. While its strong sales growth potential may tempt some, investors should also keep in mind its negative EBITDA and current stock price as these should all be factors to be taken into consideration.
Technical Analysis
DraftKings, a leading sports betting and gaming operator, has recently experienced an upswing in its stock price. Specifically, DraftKings shares have been trading well above key moving averages indicating bullish market conditions.
DraftKings’ 50-day moving average stands at EUR29.06 while its 200-day average stands at EUR24.05. These indicators show the stock has been on an upward trend, as indicated by its current trading price exceeding both averages indicating strong buying interest in it.
Additionally, the stock’s volume has been on an upswing with today’s last reported volume being 154.38% greater than its average volume of 12,186,400. This indicates increased investor enthusiasm in this stock that may drive its prices even further upward.
DraftKings’ stock has also seen increased volatility, with its intraday variation averages for last week, month, and quarter recording positive figures of 0.74%, 0.12%, and 2.54%, respectively. Furthermore, its average weekly volatility was at 1.69% followed by 2.98% in month 3 and 2.54% in quarter 4 (with highest amplitude of volatility being in week three).
DraftKings’ rising stock prices, strong buying interest and increasing volatility indicate that its shares may continue to perform favorably in the near future. Investors should keep a close watch on its financials and other market factors to make informed investment decisions.
Quarter Analysis
Investment Outlook for DraftKings:
DraftKings, a premier provider of online sports betting and daily fantasy sports, has seen extraordinary revenue and sales growth over the past year. Sales increased 57% during its current quarter and 40.1% for the following one; signalling continued expansion.
Additionally, growth estimates for both this quarter and next are 30% and 115.1% respectively – showing confidence in its future success.
DraftKings’ year-on-year quarterly revenue growth has skyrocketed by 87.7% year-to-date with 3B in sales for twelve trailing months – testament to both its excellent financial performance and ability to attract and retain customers.
Overall, DraftKings appears to be a sound investment choice; with strong sales and revenue growth as well as an optimistic view for future performance. As with any investment decision, however, extensive research should always be performed prior to making decisions or taking actions.
Equity Analysis
DraftKings’ trailing twelve months EPS stands at EUR-2.58, representing negative earnings per share. Furthermore, their return on equity (ROE) for these twelve trailing months stands at negative 83.93%.
Negative earnings per share (EPS) figures may signal to potential investors that a company is currently unprofitable and should cause concern; however, companies can experience short-term negative EPS numbers due to investments for growth or other one-time expenses.
An ROE of -83.93% indicates that a company is currently not producing profits for its shareholders relative to their equity investment. Investors should carefully consider this factor alongside other financial metrics and qualitative considerations like growth prospects and competitive positioning when making investment decisions.
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