DraftKings: Positioned For Growth – Here’s Why You Should Buy Now

Summary:

• There are reasons to be optimistic in 2025 and beyond, including the company’s improving financials and the potential to enter more states with gambling and sports betting.
• DraftKings missed Q3 2024 revenue, and EPS estimates, and its annual 2024 guidance was disappointing. Still, it provided solid 2025 annual revenue guidance of $6.2 billion-$6.6 billion.
• The company is focused on improving the betting mix to increase hold rates and profitability.
• It has solid potential upside in a U.S. total addressable market of $63 billion by 2030.

When I last wrote about DraftKings (DKNG) on January 30, 2024, I gave it a hold recommendation, primarily based on valuation and some doubts about it continuing to grow revenue and profitability simultaneously. That call has proved correct so

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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