FMP
DraftKings Inc. (NASDAQ:DKNG) Stock Update and Financial Performance Review
May 12, 2025 8:05 PM - Alex Lavoie
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- DraftKings Inc. (NASDAQ:DKNG) receives a "Buy" rating from Needham, with the stock showing resilience in trading.
- The company reports a 20% increase in revenue year-over-year but misses the Street consensus estimate and EPS expectations.
- Despite downward adjustments in full-year revenue and adjusted EBITDA guidance, DraftKings shares experienced a 4.4% increase.
DraftKings Inc. (NASDAQ:DKNG) is a prominent player in the digital sports entertainment and gaming industry. The company offers a range of products, including daily fantasy sports, sports betting, and online casino games. DraftKings competes with other major companies like FanDuel and BetMGM in the rapidly growing online sports betting market.
On May 12, 2025, Needham updated its rating for DraftKings to "Buy," maintaining its previous grade. At the time, the stock was priced at $37.93. Despite the "hold" action associated with this update, the stock has shown resilience, trading between $37.40 and $38.85 today, with a 4.69% increase from the previous day.
DraftKings reported its first-quarter financial results, revealing a revenue of $1.41 billion, a 20% increase year-over-year. However, this figure fell short of the Street consensus estimate of $1.44 billion. The company's earnings per share were 12 cents, missing the expected 22 cents per share. Despite these results, CEO Jason Robins emphasized strong performance in core value areas.
In response to the financial results, DraftKings adjusted its full-year revenue guidance to a range of $6.2 billion to $6.4 billion, down from the previous $6.3 billion to $6.6 billion. The company also revised its full-year adjusted EBITDA guidance to a range of $800 million to $900 million, from the earlier $900 million to $1 billion.
Despite the downward adjustments in forecasts, DraftKings shares experienced a 4.4% increase, trading at $37.83 on Monday. The stock has a market capitalization of approximately $18.96 billion, with a trading volume of 14,614,653 shares on the NASDAQ exchange. Over the past year, the stock has reached a high of $53.61 and a low of $28.69.
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