DraftKings: The Bullish Thesis Has Never Looked Clearer

Aug. 24, 2021 3:15 PM ETDraftKings Inc. (DKNG) StockDKNG51 Comments
Gary Alexander
31.2K Followers

Summary

  • Shares of DraftKings have shown recovery momentum since posting strong Q2 results in early August. Still, at ~30% off highs, there's still a compelling entry opportunity.
  • DraftKings saw massive increases in paid users and revenue growth in Q2, leading the company to increase its full-year guidance.
  • Its acquisition of Golden Nugget and its plans to launch DraftKings Marketplace are evidence of the company using its substantial brand to increase its market size.
  • Media also presents an interesting opportunity for DraftKings to earn reliable advertising and subscription fees.

Online Fantasy Sports Sites, FanDuel And DraftKings, Under Scrutiny Of Government
Scott Olson/Getty Images News

By now, most consumers have heard of DraftKings (NASDAQ:DKNG). The world's pre-eminent sports betting platform, though only legal for full-on sports betting in only a fraction of the U.S., has become a household brand with many

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This article was written by

31.2K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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