DKNG - DraftKings: Market Leaders Never Come Cheap - Upgrade To A Buy
2024-05-26 10:00:00 ET
Summary
- DraftKings has exceeded expectations by successfully growing its engagement in existing markets while accelerating its launch in new jurisdictions.
- Much of the tailwinds are attributed to its well-diversified offerings across gaming/ sports through its in-house offerings and Golden Nugget Online Gaming acquisition, on top of Jackpocket's lottery capabilities.
- DKNG's ability to scale its operations efficiently also underscores why the management has raised its FY2024 top/ bottom line guidance.
- Combined with its leading market share in the online gaming US market, second only to FanDuel, we believe that DKNG remains well positioned to report robust profitable growth ahead.
- It is apparent by now that market leaders never come cheap after all.
We previously covered DraftKings ( DKNG ) in November 2023, discussing its excellent FQ3'23 earnings call, thanks to the robust growth observed in its Monthly Unique Payers [MUP] and Average Revenue Per MUP, implying the stickiness of its gaming platform and loyal consumers with robust spending power....
DraftKings: Market Leaders Never Come Cheap - Upgrade To A Buy