DraftKings: Tailwinds On All Sides


  • DraftKings’ share price has jumped 25% this year, outperforming the broader market as it continues to rapidly gain new users.
  • The company’s recent launches in North Carolina and Vermont added ~10% more users than the company initially expected.
  • DraftKings has a large addressable market, improving customer acquisition costs, and offers a wide range of sports and gaming options.
  • The company recently posted a positive adjusted EBITDA and is also expecting $400 million in FCF this year, with plans to unveil a new capital allocation program next quarter.
Watching soccer game at home


Amid tough macro conditions that have consumers watching their spending on just about everything, one industry has held up quite well: gambling and gaming. The marquee 150th annual Kentucky Derby, hosted on the first Saturday of May each year, saw

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DKNG either through stock ownership, options, or other derivatives. 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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