Growth stocks, in general, are having a tough go at it in the markets in the last couple of months. Investors are getting concerned with the prospects of rising inflation, which negatively affects growth stocks, and are trimming their exposure.
Still, there have been some standouts among growth companies, at least as far as earnings are concerned. Three companies that performed well and beat estimates in the past quarter, and raised estimates for the year are DraftKings (NASDAQ:DKNG), fuboTV (NYSE:FUBO), and DoorDash (NYSE:DASH).
Starting with DraftKings, the online sportsbook and daily fantasy sports site crushed revenue estimates and raised guidance for the rest of 2021. Analysts on Wall Street were expecting DraftKings to report revenue of $231.5 million. Instead, DraftKings surprised to the upside by reporting revenue of $312 million.
The momentum was strong enough to give management the confidence to move the goalposts for the rest of 2021. DraftKings had previously guided for revenue in the range of $900 million to $1 billion in 2021. It has now updated that guidance to reflect the positive results from the quarter and is now guiding for revenue in the range of $1.05 billion to $1.1 billion. That's a 16% increase from prior expectations.
fuboTV is another growth stock that crushed sales expectations in the quarter and raised targets for the rest of the year. The streaming alternative to legacy pay-TV subscriptions like cable and satellite is benefiting as millions of households are cutting the cord. Analysts on Wall Street were counting on the company to report revenue of $103.8 million. They were surprised to find that fuboTV actually reported revenue of $119.7 million in the first quarter.
It's no surprise then that management raised performance expectations for 2021. The previous estimate for year-over-year revenue growth in 2021 was 78% -- now that has been raised to 101%. Similarly, the updated year over year subscriber estimate now calls for 53% growth, increasing from the prior estimate of 40% growth.
Finally, DoorDash blew past analyst revenue estimates in the first quarter as folks continued ordering meals for delivery despite restaurants reopening across the U.S. Analysts were expecting revenue of $993 million. Meanwhile, DoorDash reported revenue of $1.1 billion.
The better than expected results surprised management as well who now raised targets for the rest of the year. The new targets of the gross order value in the range of $35 billion to $38 billion is 15.9% higher at the midpoint than the previously targeted range of $30 billion to $33 billion. Similarly, management raised the adjusted EBITDA guidance for 2021 from a range of $0 to $200 million to a range of $0 to $300 million.
While their stock prices are fluctuating after the results, each of these growth stocks performed well in the quarter. Long-term investors should remain focused on the companies fundamentals and try to drown out the noise of price movements in the stock market. If your company continues to perform well, then it should earn a place in your portfolio. The ability to hold onto stocks during volatile times in the stock market is a prerequisite to excellent long-run returns.