DraftKings: Scaling Nicely

Jan. 22, 2023 9:46 PM ETDraftKings Inc. (DKNG)7 Comments
Gary Alexander profile picture
Gary Alexander


  • Shares of DraftKings are in rebound mode, though the stock is still down more than 30% over the past year.
  • Despite being a household name already, DraftKings still only operates in one-third of the U.S., and revenue growth is north of 2x y/y.
  • Player engagement has been incredibly high as sportsbook offerings have brought in more revenue per player.
  • DraftKings is also slowly closing the profitability gap. It has large cash reserves to cover losses as it scales.

Online Fantasy Sports Sites, FanDuel And DraftKings, Under Scrutiny Of Government

Scott Olson

It's a great time to be taking on risk again, especially as tech and growth stocks are rebounding from last year's painful stinging losses. Though investors are still generally cautious, we've seen a resurgence in small and mid-cap tech stocks

Data by YCharts

DraftKings product updates

DraftKings product updates (DraftKings Q3 shareholder deck)

DraftKings Kansas launch

DraftKings Kansas launch (DraftKings Q3 shareholder deck)

DraftKings player metrics

DraftKings player metrics (DraftKings Q3 shareholder deck)

DraftKings adjusted EBITDA

DraftKings adjusted EBITDA (DraftKings Q3 shareholder deck)

DraftKings 2023 outlook

DraftKings 2023 outlook (DraftKings Q3 earnings release)

DraftKings balance sheet

DraftKings balance sheet (DraftKings Q3 10-Q)

This article was written by

Gary Alexander profile picture
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.

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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