DraftKings (DKNG.US) stock erased premarket losses and jumped nearly 4% higher on Tuesday, despite the fact Wells Fargo downgraded the sports betting company to “equal weight” from “overweight” and lowered its price target to $19 per share from $41 saying rising costs are going to weigh heavily.
- “Our downgrade is company specific and reflects our growing concern on DraftKings’ path to profitability given its fast-growing operating expenses. DraftKings’ implied 2022 operating expenditure will increase 60%+ year-on-year versus its expected around 49% revenue growth,” analyst Daniel Politzer said in a note, according to StreetInsider.
- Sales and marketing expenses during the year almost doubled to $ 982 million, but the number of unique customers paying monthly on the platform increased by only 32% to around 2 million.
- DraftKings is expected to improve its profits in the future, although it will be difficult for the company to achieve positive full-year EBITDA before 2025.
DraftKings (DKNG.US) stock plunged more than 21.0% on Friday following its quarterly report and today buyers attempt to recover some of the recent losses. The nearest support can be found at $11.00 where 2020 lows are located, while buyers may focus on the resistance at $25.00 which coincides with 78.6% Fibonacci retracement of the upward wave launched in March 2020, 50 SMA (green line) and upper limit of the wedge formation. Source: xStation5
Gaming companies with huge discounts 🚨 Will Project Genie end the traditional era of gaming ❓
Warsh wins Fed race
Lockheed Martin earnings: The peak of global tensions and valuations
Market wrap: European indices outperform US stocks ahead of the opening bell on Wall Street 📉
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
