Draftkings (NASDAQ:DKNG) is a Boston-based company that operates in the digital entertainment and gaming space. Its shares have dropped 9.6% in 2021 as of early afternoon trading on November 12. The stock is down 1.8% year over year.
The company rose to prominence as it allowed users to participate in daily and weekly fantasy sports-related contests across major American sports leagues. It has since benefited from the legalization of sports betting in the United States. The U.S. Supreme Court struck down the ban on sports betting in May 2018. Since then, nearly 80% of states have either legalized sports wagering or introduced legislation to push it forward.
In Q3 2021, Draftkings delivered revenue growth of 60% to $213 million. The company has made promising strides with its industry leading mobile sports betting app. Revenue would have been higher were it not for unpredictable National Football League (NFL) outcomes in the first half of the season. Regardless, it bolstered its 2021 revenue guidance and unveiled strong guidance for the 2022 fiscal year.
Monthly Unique Players (MUPs) for its B2C segment rose 31% year-over-year to 1.3 million. Meanwhile, average revenue per MUP jumped 38% to $47. This was without the contribution from major sports leagues like the NHL and MLB.
Shares of Draftkings are trading at favourable levels in comparison to its industry peers. It last had an RSI of 29. That puts the stock in technically oversold territory. I’m looking to snag Draftkings at a solid price in mid-November.
