DraftKings: Buy The Gap Fill, Take The Over

Summary

  • DraftKings' stock has been absolutely decimated in recent months.
  • High revenue growth names with little to no earnings are seeing immense compression in valuation.
  • With DKNG stock closing the gap to the initial listing, you will see buyers step in.
  • We recommend a trade in DKNG stock, but there are fundamental concerns to consider.
  • This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing. Learn More »
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Everyone who knows and follows DraftKings (NASDAQ:DKNG) stock knows that it has been absolutely crushed in recent months. We have had a very interesting history with this stock. Actually, our entire team owns it, except we all have a so-called "house position" as

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The Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The broader company has expertise in business, policy, economics, mathematics, game theory, & the sciences. They share both long & short trades & invest personally in equities they discuss within their investing group BAD BEAT Investing, focused on short- & medium-term investments, income generation, special-situations, & momentum trades. Rather than just give you trades, they focus on teaching investors to become proficient traders through their playbook. Their goal is to save you time by providing in depth, high-quality research, with crystal clear entry and exit targets. They have a proven track record of success.

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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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