
DraftKings (DKNG) Stock Forecast & Price Target
DraftKings (DKNG) Analyst Ratings
Bulls say
DraftKings has demonstrated a robust financial performance, with a 14.7% year-over-year increase in handle during the first three weeks of the NFL season, surpassing the overall growth in New York. The company reported a significant rise in monthly unique payers (MUPs), reaching 4.3 million, which reflects a 28% increase year-over-year, indicating strong customer retention and successful acquisition efforts, particularly through its combination with Jackpocket. Furthermore, DraftKings anticipates adjusted gross margins of 46%, reflecting a 300 basis points improvement year-over-year, underscoring the company’s increasing operational efficiency and positive outlook for long-term growth.
Bears say
DraftKings experienced a significant decline in gross gaming revenue (GGR), falling 12.1% compared to a minor state total decline of 0.5%, indicating a loss of market performance despite being present in diverse jurisdictions. The company's guidance for EBITDA has been downgraded, reflecting reduced expectations for both overall revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) due to unfavorable market conditions, including high promotional expenses and poor sports outcomes. Additionally, the downward revision of Q3 revenue estimates from $1,385 million to $1,169 million further underscores the challenges facing DraftKings amidst weakened hold dynamics and increased competition in the online gambling landscape.
This aggregate rating is based on analysts' research of DraftKings and is not a guaranteed prediction by Public.com or investment advice.
DraftKings (DKNG) Analyst Forecast & Price Prediction
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