The Recent Rise of DraftKings' Stock Price
This is a writing sample from Scripted writer William Galante
As the first fiscal quarter of 2024 draws toward a close, DraftKings’ (DKNG) stock price has continued to climb. Shares have been on a steady rise so far this year and have reached their highest levels since Q4 2021.
DKNG 2023 Earnings Call
This recent growth has been bolstered by a very positive earnings call last month in which the company reported a 64% revenue growth YoY (‘22-’23), and posted their first two EBITDA positive quarters in company history.
In addition to their impressive financial results from the year, the company took over the number one spot within the iGaming and online sports betting industry based on gross gaming revenue (GGR). Their product roadmap also remains focused as the continue to prioritize efficiency and optimization while keeping in-game betting as an enhancement to their platform.
Jackpocket Acquisition
DraftKings’ stock price received another jolt after the finalization of their acquisition of the digital lottery company Jackpocket. While the price did not increase immediately following the announcement, the synergies and opportunity associated with the transaction have aided in recent growth. The $750 million purchase gives DKNG access to over two million users of the app. In a crowded industry where customer acquisition is key to success, this access is a massive opportunity for DraftKings to convert current Jackpocket users into high lifetime value (LTV) of DraftKings igaming and online sports betting platform.
Online Sports Betting Market
If analysts are correct in their predictions for the OSB market, then DraftKings’ stock price will continue on its current trajectory, as estimates project a compounded annual growth rate of 11.1% over the next eight years. There are still twelve states that have yet to legalize online sports betting, and a few are still very nascent in their market development. This means that there is still considerable white space for the industry.
Overall, financial institutions remain bullish on the OSB and igaming industry and DraftKings continuing to take share and grow their business, their shareholders remain poised to benefit. This could be an optimal time to buy DKNG stock here.
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