equitieswatch
Tuesday, January 24, 2023
About us
Advertise
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities
No Result
View All Result
Equitieswatch.com
No Result
View All Result

Is DraftKings a Good Bet for Anyone’s Portfolio?

by equitieswatch
March 10, 2022
in Stock Market

YOU MAY ALSO LIKE

Mexico’s new airport gets boost from Panama’s Copa Airlines By Reuters

Honda and Sony Team Up to Tackle Tesla

While online gambling has attracted a lot of interest and generated additional revenue for DraftKings  (DKNG) – Get DraftKings Inc Class A Report, the stock remains a trade and not a long-term hold, says Real Money contributor Stephen “Sarge” Guilfoyle.

Even though online gambling has been legalized in many states such as New York, the stock’s recent selloff put the “shares right back at the central trend line of a six month long downward sloping Pitchfork model,” he wrote in a recent Real Money Pro column.

DraftKings stock is down more than 35% so far this year.

“Would I buy this dip?” Guilfoyle asked. “Maybe for a trade, with the understanding that I was gambling on gambling. Would I invest in DraftKings? Not with my money. Not with your money. Not with your money even if I hated your guts. No.”

While revenue for the gambling site rose during the fourth quarter by 46.9% from the year ago period, DraftKings also reported the cost of revenue increased 59% to $253.2 million. Sales and marketing expenses (not included in cost of revenue) rose by 45% to $278.4 million while general and administrative costs rose by 39% to $240.8 million. The company also shelled out another $69.6 million in product and technology costs which left it with a loss of $386.8 million from operations.

The company increased its guidance for the first quarter of 2022 with full year 2022 revenue generation at $1.85 billion to $2 billion, an increase from its prior guidance of $1.7 billion to $1.9 billion and would demonstrate year over year growth of 43% to 54%.

Here’s the problem, says Guilfoyle: “DraftKings estimates adjusted EBITDA to land between a loss of $825 million and $925 million while Wall Street estimated $700 million on that item.”



Source link

ShareTweetPin

Search

No Result
View All Result

Recent News

Oil slips further on demand, financial market worries By Reuters

Oil Sinks Further Amid China Concerns, Weakened Economic Prospects By Investing.com

October 25, 2022
Gold Up, Set for Second Weekly Gain as Dollar Falls from 20-Year High By Investing.com

Gold Pressured Near $1,650, Copper Muted on Economic Fears By Investing.com

October 25, 2022
Explainer-What would be the impact of Russian oil sanctions in Europe? By Reuters

Oil prices edge higher as U.S. dollar eases By Reuters

October 25, 2022
Equitieswatch.com

Equitieswatch.com is your Stock Market, Finance, Forex, Cryptocurrency, Business, NFT News Website. We provide you with the latest breaking news and videos straight from the Business industry.

  • Home
  • About us
  • Contact
  • Privacy Policy

© 2022 www.equitieswatch.com

No Result
View All Result
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities

© 2022 www.equitieswatch.com