Today's video focuses on recent news affecting DraftKings (DKNG -1.72%) and why its stock price went up over 6% at one point on Oct. 26. Here are some highlights from the video.
- In late September, reports appeared that DraftKings was making a $22 billion bid for Entain (ENT 0.10%). On Oct. 26, DraftKings announced that it would not make a firm offer for Entain. Based on the price action movement, investors are happy that the acquisition is not going through.
- Currently, DraftKings is trading at a forward-one-year-price-to-sales ratio of 11, and its stock price is down over 30% from its 52-week high closing.
- DraftKings' management is still highly confident it will maintain a leadership position and achieve long-term growth in North America. Investors are still excited about DraftKings' growth as more states legalize online sports betting, fantasy sportsbooks, and online casinos.
- Entain's stock price dropped over 5% on the day, trading in the opposite direction from DraftKings.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Oct. 26, 2021. The video was published on Oct. 26, 2021.