Is DraftKings Stock a Good Investment?

DraftKings Investment Advice

DKNG

To provide specific investment advice or recommendations on DraftKings stock, we recommend investors consider the following general factors when evaluating DraftKings. This will help you to make an informed decision on whether to include DraftKings in one of your diversified portfolios:

Examine DraftKings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research DraftKings' leadership team and their track record. Good management can help DraftKings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact DraftKings' business and its evolving consumer preferences.
Compare DraftKings' performance and market position to its competitors. Analyze how DraftKings is positioned in terms of product offerings, innovation, and market share.
Check if DraftKings pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about DraftKings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in DraftKings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if DraftKings is a good investment.

Sell

Buy

Hold

DraftKings advice module can be used to check and cross-verify current investment recommendation provided by analysts reviewing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure DraftKings is not overpriced, please confirm all DraftKings fundamentals, including its revenue, current ratio, and the relationship between the number of shares shorted and cash and equivalents . Given that DraftKings has a price to earning of 106.37 X, we urge you to verify DraftKings market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Very steady	Details
Hype Condition	Under hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Responds to the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine DraftKings Stock

Researching DraftKings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 77.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.67. DraftKings recorded a loss per share of 0.87. The entity had not issued any dividends in recent years. The firm had 1:1 split on the 5th of May 2022.

To determine if DraftKings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding DraftKings' research are outlined below:

	The company reported the previous year's revenue of 3.67 B. Net Loss for the year was (802.14 M) with profit before overhead, payroll, taxes, and interest of 756.19 M.
	DraftKings currently holds about 1.51 B in cash with (1.75 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.38.
	Over 77.0% of the company shares are held by institutions such as insurance companies
	Latest headline from finance.yahoo.com: Wall Street Bulls Look Optimistic About DraftKings Should You Buy

DraftKings Quarterly Gross Profit

353.06 Million

DraftKings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in DraftKings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to DraftKings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	15th of February 2024 Upcoming Quarterly Report	View
	2nd of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	15th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact DraftKings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises DraftKings' investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-05-15	2020-03-31	-0.16	-0.19	-0.03	18
2023-02-16	2022-12-31	-0.59	-0.53	0.06	10
2023-08-03	2023-06-30	-0.25	-0.17	0.08	32
2024-08-01	2024-06-30	-0.01	0.12	0.13	1300
2024-11-07	2024-09-30	-0.42	-0.6	-0.18	42
2024-02-15	2023-12-31	0.08	-0.1	-0.18	225
2020-03-12	2019-12-31	-0.23	-0.05	0.18	78
2021-02-26	2020-12-31	-0.47	-0.68	-0.21	44

Know DraftKings' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as DraftKings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading DraftKings backward and forwards among themselves. DraftKings' institutional investor refers to the entity that pools money to purchase DraftKings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Amvescap Plc.	2024-06-30	6.6 M
Fmr Inc	2024-09-30	6.5 M
Ark Investment Management Llc	2024-09-30	6 M
Nikko Asset Management Americas Inc	2024-06-30	5.9 M
Atlas Venture Advisors, Inc.	2024-09-30	5.9 M
Capital Research Global Investors	2024-09-30	5.8 M
Massachusetts Financial Services Company	2024-09-30	5.8 M
Samlyn Capital, Llc	2024-09-30	5.7 M
Norges Bank	2024-06-30	5.7 M
Vanguard Group Inc	2024-09-30	42.5 M
Blackrock Inc	2024-06-30	30.8 M

Note, although DraftKings' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

DraftKings' market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 21 B.

Market Cap

1.49 Billion

DraftKings' profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.34)	(0.36)
Return On Capital Employed	(0.33)	(0.35)
Return On Assets	(0.20)	(0.21)
Return On Equity	(0.95)	(1.00)

The company has Profit Margin (PM) of (0.09) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.25) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.25.

Determining DraftKings' profitability involves analyzing its financial statements and using various financial metrics to determine if DraftKings is a good buy. For example, gross profit margin measures DraftKings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of DraftKings' profitability and make more informed investment decisions.

DraftKings' Earnings Breakdown by Geography

Evaluate DraftKings' management efficiency

DraftKings has return on total asset (ROA) of (0.0693) % which means that it has lost $0.0693 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.4443) %, meaning that it created substantial loss on money invested by shareholders. DraftKings' management efficiency ratios could be used to measure how well DraftKings manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.36. The current Return On Capital Employed is estimated to decrease to -0.35. At this time, DraftKings' Debt To Assets are most likely to increase slightly in the upcoming years. The DraftKings' current Fixed Asset Turnover is estimated to increase to 32.55, while Other Assets are projected to decrease to 0.95.

	Last Reported	Projected for Next Year
Book Value Per Share	1.82	1.74
Tangible Book Value Per Share	(1.59)	(1.51)
Enterprise Value Over EBITDA	(27.92)	(29.32)
Price Book Value Ratio	19.41	18.44
Enterprise Value Multiple	(27.92)	(29.32)
Price Fair Value	19.41	18.44
Enterprise Value	1.8 B	1.4 B

Leadership effectiveness at DraftKings is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.

Beta

1.819

Basic technical analysis of DraftKings Stock

As of the 28th of November, DraftKings shows the Mean Deviation of 1.92, downside deviation of 2.28, and Semi Deviation of 1.97. DraftKings technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm DraftKings information ratio, and the relationship between the downside deviation and value at risk to decide if DraftKings is priced favorably, providing market reflects its regular price of 43.03 per share. Given that DraftKings has jensen alpha of 0.1611, we urge you to verify DraftKings's prevailing market performance to make sure the company can sustain itself at a future point.

DraftKings' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific DraftKings insiders, such as employees or executives, is commonly permitted as long as it does not rely on DraftKings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases DraftKings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Alan Ellingson few days ago Disposition of 213 shares by Alan Ellingson of DraftKings subject to Rule 16b-3
		Jason Robins over three months ago Disposition of 2828 shares by Jason Robins of DraftKings at 35.25 subject to Rule 16b-3
		Sloan Harry over three months ago Disposition of 250000 shares by Sloan Harry of DraftKings at 38.15 subject to Rule 16b-3
		Dodge R Stanton over six months ago Disposition of 11029 shares by Dodge R Stanton of DraftKings subject to Rule 16b-3
		Walden Marni M over a year ago Payment of 19794 shares by Walden Marni M of DraftKings subject to Rule 16b-3

DraftKings' Outstanding Corporate Bonds

DraftKings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. DraftKings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most DraftKings bonds can be classified according to their maturity, which is the date when DraftKings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	MPLX LP 52 Corp Bond US55336VAL45	View

View All DraftKings Corporate Bonds

Understand DraftKings' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing DraftKings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1116
	Market Risk Adjusted Performance	0.2448
	Mean Deviation	1.92
	Semi Deviation	1.97
	Downside Deviation	2.28
	Coefficient Of Variation	730.25
	Standard Deviation	2.49
	Variance	6.19
	Information Ratio	0.0845
	Jensen Alpha	0.1611
	Total Risk Alpha	(0.06)
	Sortino Ratio	0.0921
	Treynor Ratio	0.2348
	Maximum Drawdown	11.15
	Value At Risk	(3.38)
	Potential Upside	5.0
	Downside Variance	5.21
	Semi Variance	3.89
	Expected Short fall	(2.04)
	Skewness	0.5489
	Kurtosis	0.374

	Risk Adjusted Performance	0.1116
	Market Risk Adjusted Performance	0.2448
	Mean Deviation	1.92
	Semi Deviation	1.97
	Downside Deviation	2.28
	Coefficient Of Variation	730.25
	Standard Deviation	2.49
	Variance	6.19
	Information Ratio	0.0845
	Jensen Alpha	0.1611
	Total Risk Alpha	(0.06)
	Sortino Ratio	0.0921
	Treynor Ratio	0.2348
	Maximum Drawdown	11.15
	Value At Risk	(3.38)
	Potential Upside	5.0
	Downside Variance	5.21
	Semi Variance	3.89
	Expected Short fall	(2.04)
	Skewness	0.5489
	Kurtosis	0.374

Consider DraftKings' intraday indicators

DraftKings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of DraftKings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	188352.0
	Daily Balance Of Power	(0.02)
	Rate Of Daily Change	1.0
	Day Median Price	43.4
	Day Typical Price	43.27
	Price Action Indicator	(0.38)
	Period Momentum Indicator	(0.03)
	Relative Strength Index	66.02

DraftKings Corporate Filings

F4	26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
13A	12th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify
8K	8th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
8K	2nd of August 2024 An amendment to a previously filed Form 8-K	View Verify

DraftKings time-series forecasting models is one of many DraftKings' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary DraftKings' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

DraftKings Stock media impact

Far too much social signal, news, headlines, and media speculation about DraftKings that are available to investors today. That information is available publicly through DraftKings media outlets and privately through word of mouth or via DraftKings internal channels. However, regardless of the origin, that massive amount of DraftKings data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of DraftKings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of DraftKings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to DraftKings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive DraftKings alpha.

DraftKings Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards DraftKings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

DraftKings Historical Investor Sentiment

Investor biases related to DraftKings' public news can be used to forecast risks associated with an investment in DraftKings. The trend in average sentiment can be used to explain how an investor holding DraftKings can time the market purely based on public headlines and social activities around DraftKings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

DraftKings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for DraftKings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average DraftKings news discussions. The higher the estimate score, the more favorable the investor's outlook on DraftKings.

DraftKings Corporate Management

Alan Ellingson	SVP Analytics	Profile
Lori Kalani	Chief Officer	Profile
Jason Robins	Chairman CoFounder	Profile
Brian Angiolet	Chief Officer	Profile
Joseph DeCristofaro	Vice Relations	Profile

When determining whether DraftKings is a strong investment it is important to analyze DraftKings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact DraftKings' future performance. For an informed investment choice regarding DraftKings Stock, refer to the following important reports: