DraftKings: Market Leaders Never Come Cheap – Upgrade To A Buy


  • DraftKings has exceeded expectations by successfully growing its engagement in existing markets while accelerating its launch in new jurisdictions.
  • Much of the tailwinds are attributed to its well-diversified offerings across gaming/ sports through its in-house offerings and Golden Nugget Online Gaming acquisition, on top of Jackpocket’s lottery capabilities.
  • DKNG’s ability to scale its operations efficiently also underscores why the management has raised its FY2024 top/ bottom line guidance.
  • Combined with its leading market share in the online gaming US market, second only to FanDuel, we believe that DKNG remains well positioned to report robust profitable growth ahead.
  • It is apparent by now that market leaders never come cheap after all.

Man celebrating victory after making bets at bookmaker website

Wpadington/iStock via Getty Images

We previously covered DraftKings (NASDAQ:DKNG) in November 2023, discussing its excellent FQ3’23 earnings call, thanks to the robust growth observed in its Monthly Unique Payers [MUP] and Average Revenue Per MUP, implying the stickiness of its gaming platform

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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