DraftKings Inc. (DKNG) is the nation’s most prominent sports betting and fantasy sports provider. The stock is down 40% from its 2021 highs due to a broader market correction in the tech sector. Many fans were trapped in their homes in 2020, resulting in an increased income for DraftKings.
At the present moment, the company can operate in about a quarter of states while it awaits approval from local regulators.
By year’s end, DraftKings Inc. (NASDAQ: DKNG) management aims to cover about 31% of the country, which would allow DraftKings to increase its profit very quickly: by the end of 2021, they want to cover 31% of the country. This is possible because all the prerequisites exist. Similarly, in New York, officials consider legalizing rates to replenish the budget affected by the Coronavirus. The moment a state makes a favorable decision, a domino effect may ensue.
The popularity of DraftKings is due to its fantasy sports format: participants form virtual teams, earn points for good performance, and compete with others. Because fans of football, golf, NASCAR, NBA, and MMA already know the brand, the company does not need to create a new market from scratch.
In the first quarter of 2021, DraftKings Inc. (NASDAQ: DKNG) reported increased revenue of 175% y / y to $ 312.3 million. A 109% year-over-year growth had been predicted by Wall Street. Revenues are forecasted to increase by 70-87% in 2021 compared to 2020.
DraftKings Inc. (DKNG) shares advanced 1.75% to close Tuesday’s session at $44.27. The volume was 15.12 million shares, lower than the average daily volume of 17.41 million shares over the past 50 days. Over the past 12 months, DKNG shares have risen 49.81%, and they have gained 0.59% in the past week. Stocks have declined -24.79% over the past three months, while they have gained 3.34% over the past six months. Moreover, the company’s current market value was $16.21 billion, while its outstanding shares totaled 397.62 million.