DKNG - DraftKings: The Odds Are Against You At The Current Valuation
2024-06-25 17:25:27 ET
Summary
- DraftKings benefits from strong growth prospects due to secular tailwinds.
- It faces intense competition with no clear customer retention advantages.
- The current valuation may be unrealistic and may reflect an overly optimistic scenario.
DraftKings ( DKNG ) is riding several attractive growth waves, including the legalization of online sports betting, digitalization, the rise in sports popularity, and the regulators' never-ending appetite for more tax income.
On the flip side, it competes in a highly competitive market, with lots of players, relatively low barriers to entry, and arguably not enough ways to create customer retention, aside from pricing....
DraftKings: The Odds Are Against You At The Current Valuation