DraftKings (DKNG, $49.21) beats Q1 expectations
Sports-betting platform DraftKings reported first quarter results that was better than analysts’ expectations, on the back of strong revenue growth.
DraftKings’ adjusted loss for the quarter came in at - 36 cents a share, narrower than the -43 cents loss a share anticipated by analysts polled by FactSet.
The company’s revenue surged +252.6% from the year-ago quarter to $312.3 million, exceeding analysts' estimates of $236.2 million.
The number of monthly unique players was 1.5 million as of its first quarter, vs. 1.31 million expected by analysts (according to FactSet). Average revenue per monthly unique paying customer came in at $61 in the first quarter, rising +48% from the year-ago period. It was boosted by increased engagement with its iGaming and mobile sports betting product offerings, as well as cross-selling, the company said.
Looking ahead, DraftKings boosted its fiscal 2021 revenue guidance from a range of $900 million to $1 billion to a range of $1.05 billion to $1.15 billion. Analysts had been expecting $1.05 billion.
DKNG sees MACD Histogram just turned negative
DKNG saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 09, 2022. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 20 instances where the indicator turned negative. In 18 of the 20 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 90%.
Current price $12.61 crossed the support line at $11.80 and is trading between $58.21 support and $11.80 support lines. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -23% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -4%.
The Momentum Indicator moved below the 0 level on May 06, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on DKNG as a result. In 31 of 38 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 82%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DKNG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 87%.
The Aroon Indicator for DKNG entered a downward trend on May 13, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DKNG's RSI Oscillator exited the oversold zone, 12 of 15 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +22.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where DKNG advanced for three days, in 93 of 116 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
DKNG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 75%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.11.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DKNG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.
The Tickeron Valuation Rating of 97 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.285) is normal, around the industry mean (5.756). P/E Ratio (0.000) is within average values for comparable stocks, (79.191). DKNG's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (0.907). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (3.915) is also within normal values, averaging (8.802).
The Tickeron SMR rating for this company is 96 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 93 (best 1 - 100 worst), indicating slightly worse than average price growth. DKNG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 9 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Casinos/Gaming includes companies that operate casinos, gaming services, horse racing and harness racing facilities. Think Las Vegas Sands Corp., MGM Resorts International and Wynn Resorts, Ltd. In periods of strong economic growth, consumers tend to spend on discretionary/leisure activities like gambling or games; but consumption is likely to slow down when there’s economic sluggishness.
The average market capitalization across the Casinos/Gaming Industry is 3.3B. The market cap for tickers in the group ranges from 153K to 26.5B. LVS holds the highest valuation in this group at 26.5B. The lowest valued company is ROBK at 153K.
The average weekly price growth across all stocks in the Casinos/Gaming Industry was -2.85%. For the same Industry, the average monthly price growth was -11.31%, and the average quarterly price growth was -15.91%. WPKS experienced the highest price growth at 122.22%, while EPGG experienced the biggest fall at -36.36%.
- 5/4/22 8:26 AM: DraftKings (DKNG, $15.08) was a top weekly gainer, with a +8.02% jump
- 3/30/22 5:33 AM: DraftKings (DKNG, $20.69) was a top weekly gainer, with a +6.59% jump
- 3/18/22 7:14 AM: DraftKings (DKNG, $18.99) was a top weekly gainer, with a +8.02% jump
The average weekly volume growth across all stocks in the Casinos/Gaming Industry was 0.84%. For the same stocks of the Industry, the average monthly volume growth was 92.18% and the average quarterly volume growth was 77.87%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 56%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.15.
10 stocks in the group of tickers confirmed the negative outlook based on the TrendMonth indicator with average odds of 66%.
The average market capitalization across the group is 10.2B. The market cap for tickers in the group ranges from 299.1M to 39.1B. BIDU holds the highest valuation in this group at 39.1B. The lowest valued company is EGAN at 299.1M.
The average weekly price growth across all stocks in the group was -1.8%. For the same group, the average monthly price growth was -19.06%, and the average quarterly price growth was -27.53%. ANGI experienced the highest price growth at 24.09%, while MSTR experienced the biggest fall at -30.48%.
- 5/14/22 4:23 AM: Angi (ANGI, $5.1) was a top weekly gainer, with a +24.09% jump. Expect an Uptrend continuation
- 5/6/22 5:04 AM: CoStar Group (CSGP, $61) was a top loser this week, declining -6.81%
- 5/4/22 8:26 AM: VNET Group (VNET, $6.5) was a top weekly gainer, with a +24.76% jump
The average weekly volume growth across all stocks in the group was 16.71%. For the same stocks of the group, the average monthly volume growth was 137.7% and the average quarterly volume growth was 66.02%
- 5/13/22 4:49 AM: The volume for MicroStrategy stock increased for one day, resulting in a record-breaking daily growth of 724% of the 65-Day Volume Moving Average
- 5/11/22 7:39 AM: The volume for MicroStrategy stock increased for one day, resulting in a record-breaking daily growth of 261% of the 65-Day Volume Moving Average
- 3/19/22 4:44 AM: The volume for Baidu stock increased for one day, resulting in a record-breaking daily growth of 259% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows