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DraftKings (DKNG, $59.37) shares climb, on ARK Next Generation Internet ETF’s purchase of 620,300 shares
On Tuesday, shares of sports gambling platform DraftKings jumped, following news of ARK Next Generation Internet ETF’s purchase of 620,300 shares.
Run by fund manager Cathie Wood, ARK Next Generation owned 620,300 shares - nearly $34 million - of DraftKings as of Feb. 1.
On Sunday, analyst Mike Hickey raised his price target for DraftKings shares to $66 from $60. Hickey has a Buy rating on the stock. The analyst expects a strong performance during its fiscal fourth quarter from the company.
“The online sports betting and online casino markets have demonstrated remarkable growth,” Hickey wrote. Hickey predicts a revenue of $222 million for the fiscal fourth quarter, compared to consensus estimates of around $232 million. Looking ahead, he expects revenue of $843 million in the 2021 fiscal year.
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 Indicator 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 MA200MA50 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 1.18.
65 stocks in the group of tickers exhibit a similar negative trend based on the TrendWeek indicator with an average likelihood of 79%.
The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:FB), NetEase (NASDAQ:NTES), Snap (NYSE:SNAP), Baidu (NASDAQ:BIDU), Twitter (NYSE:TWTR), Spotify Technology SA (NYSE:SPOT), Pinterest (NYSE:PINS), Zynga (NASDAQ:ZNGA).
The average market capitalization across the group is 40.6B. The market cap for tickers in the group ranges from 6.1M to 1.5T. GOOG holds the highest valuation in this group at 1.5T. The lowest valued company is MYSZ at 6.1M.
- 5/14/22 4:23 AM: Alphabet (GOOG, $2,330.31), market cap jumped by $44.1B
- 5/12/22 5:38 AM: Meta Platforms (FB, $188.74) saw a $93.8B market cap decrease this week
- 5/11/22 7:46 AM: Alphabet (GOOGL, $2,287.9), market cap jumped by $26.0B
The average weekly price growth across all stocks in the group was -3.83%. For the same group, the average monthly price growth was -20.49%, and the average quarterly price growth was -46.28%. MCHX experienced the highest price growth at 34.94%, while UPST experienced the biggest fall at -54.55%.
- 5/14/22 4:23 AM: Opendoor Technologies (OPEN, $7.27) was a top weekly gainer, with a +8.35% jump
- 5/14/22 4:23 AM: American Well (AMWL, $3.21) was a top weekly gainer, with a +8.81% jump
- 5/14/22 4:23 AM: Tradeweb Markets (TW, $67.27) was a top weekly gainer, with a +5.32% jump
The average weekly volume growth across all stocks in the group was 550.52%. For the same stocks of the group, the average monthly volume growth was 507.07% and the average quarterly volume growth was 1201.31%
- 5/14/22 4:17 AM: The volume for So-Young International stock increased for a consecutive 5 days, with an average daily gain of 140%
- 5/14/22 4:17 AM: The volume for China Index Holdings stock increased for two consecutive days, resulting in a record-breaking daily growth of 3,988% of the 65-Day Volume Moving Average
- 5/14/22 4:17 AM: The volume for My Size stock increased for one day, resulting in a record-breaking daily growth of 3,129% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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