Why Now is the Right Time to Buy DraftKings Shares
The soaring stock has now made CEO Jason Robins an official Billionaire
While investors may have been a little unnerved by DraftKings share plummet at the beginning of March, the US gambling stock has made a major recovery, returning to its ‘climbing’ status. This followed a successful virtual investor day presentation where the firm raised long-term financial targets.
Draftkings, the daily fantasy and sportsbook operator, has found itself in position of market domination, with reports of the brand entering new markets and developing new partnerships feeling like a daily occurrence. Just last week, Draftkings itself said it believed the US gambling industry to be worth $24bn annually. With a 20% stake in the industry, this puts Draftkings in an incredibly advantageous position.
The soaring stock has now made CEO Jason Robins an official Billionaire, with Draftkings shares reaching $75 a piece. The surge also pushed the fortunes of his two cofounders to around $500 million each.
This was bolstered by news that the brand had altered its long-term net revenue projection from $3.7 billion to $5.4 billion. The company also raised its long-term adjusted earnings before interest, taxes, depreciation, and amortization target to $1.7 billion from $1.2 billion, which has arguably been influenced by a number of significant deals and partnerships made over the past few months.
DraftKings has recently shared the news that it's expanding its exclusive daily fantasy partnership with the NFL to Canada; a move that will enhance its bottom line considerably. This was complemented by a separate deal with the UFC to be its official sportsbook and "daily fantasy partner" in the U.S. and Canada.
Investing in DeaftKings stock
This the stock is too expensive? Think again! The majority of analysts believe that DraftKings’ share price will reach at least $150 within the next 12 months. Considering that it has rallied more than 50% so far this year, we would be inclined to agree.
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