PENN - DraftKings guidance could reset expectations on sports betting profitability

DraftKings (NASDAQ:DKNG) opened with a 14.39% drop after the sports betting company's below-consensus EBITDA guidance overshadowed a Q4 revenue beat. Bloomberg Intelligence analyst Brian Egger noted that the DKNG guidance for a 2022 EBITDA loss that is $300M to $400M deeper than consensus underscores the near-term profit hit from customer-acquisition costs as sports betting companies penetrate new states. That heated competition in new markets is expected to last all year. Sector watch: Other sports betting-related stocks that fell in early trading following the DKNG print included Golden Nugget Online Gaming (GNOG -17.7%), Rush Street Interactive (RSI -6.3%), GAN Limited (GAN -3.1%) and Penn National Gaming (PENN -1.8%). FanDuel owner Flutter Entertainment (OTCPK:PDYPY) slid 3.88% in London, while the valuation of Fanatics (FANA) for future funding rounds could also be impacted if the sports betting profitability outlook takes a hit. There has been speculation that Rush Street could be a buyer

For further details see:

DraftKings guidance could reset expectations on sports betting profitability