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Is This a Buying Opportunity for DraftKings?

By Jose Najarro – Nov 8, 2021 at 10:00AM

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DraftKings' online sports betting still has plenty of room to grow in the United States.

Today's video focuses on DraftKings (DKNG 0.47%) and an update on its earnings reported on Nov. 5 before the market opened. Here are some highlights from the video. 

  1. DraftKings' third-quarter revenue was $213 million, up 60% year over year (YOY). The revenue increase was driven by monthly unique players, which rose to 1.34 million, up 31% YOY and 19% quarter over quarter.
  2. Online sports betting and online casinos are still in their early stages in the US. Online sports betting is only live in 15 states, representing only 29% of the US population. Online casinos are live in only five states, representing only 11% of the total US population. New York has recently legalized online sports betting, and sportsbooks are expected to launch in early 2022.
  3. For the fiscal year 2021, DraftKings expects revenue growth of at least 90% YOY, and for 2022 it expects growth of roughly 40% YOY.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the premarket prices of Nov. 5, 2021. The video was published on Nov. 5, 2021.

Jose Najarro owns shares of DraftKings Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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