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Is DKNG Stock a Buy on Doubled Revenue? 3 Analysts Weigh In on DraftKings Price Predictions

The past few trading sessions for online gambling company DraftKings (NASDAQ:DKNG) have been volatile, to say the least. Today, DKNG stock has surged more than 5% higher on an otherwise red day in the markets. However, since reporti…

The past few trading sessions for online gambling company DraftKings (NASDAQ:DKNG) have been volatile, to say the least. Today, DKNG stock has surged more than 5% higher on an otherwise red day in the markets. However, since reporting earnings on Feb. 18, it’s still down over 10% from pre-earnings levels.

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The selloff we saw take place following DraftKings’ earnings is noteworthy because, by all accounts, the company’s numbers were strong. DKNG reported revenue growth of 47% on a year-over-year (YOY) basis. This represented an acceleration of growth, something that’s typically viewed very positively by investors.

However, DraftKings’ bottom-line numbers appear to have disappointed. Higher marketing and expansion costs drove weaker-than-expected bottom-line results. Further, investors are now bracing for a rather dim outlook in terms of profitability for 2022.

Now, the question investors are asking is whether the company’s increased investment to grab market share will pay off in the long run. Today, bulls seem to think this is the case. Some investors appear to be keying in on DKNG stock as a name that has been oversold following its strong earnings.

Let’s dive into what the expert analysts think of DraftKings right now.

Where Analysts Think DKNG Stock Could Be Headed

For context, DKNG stock trades at around $19.60 per share at the time of this writing.

  • Needham’s Bernie McTernan reiterated a “buy” rating on the stock with a $32 price target.
  • Ed Engel of Roth Capital upgraded DKNG from “sell” to “neutral” with a price target of $19.
  • Finally, Oppenheimer’s Jed Kelly also put a “buy” rating on DKNG stock. Kelly gave it a $32 price target as well.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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