DraftKings' Blowout Q4 Is Just the Beginning for This Stock
There's no denying it. DraftKings' (NASDAQ: DKNG) fourth quarter was a home run. Revenue improved 81% on a year-over-year basis. And while the sports-wagering outfit is still losing money, the shrinking loss came in better than expected, as did its top line. The company also upped its guidance for the year now underway. The news sent shares 15% higher on Feb. 17, extending their year-to-date rally to more than 80%.
The sheer span and speed of this gain sets the stage for at least a little bit of profit-taking now ... maybe. Don't sweat it if and when that happens, though. There's still plenty of upside in store for this name. That's because there's so much more in store for the sports wagering industry than for DraftKings itself.
For the fourth quarter, DraftKings lost nearly $243 million on sales of $855 million. The top line surged from $473 million in the year-ago period, and while still in the red, the bottom line also marked an improvement from last year's $326 million loss. The company's biggest bottom-line boost came from curtailed administrative and general spending. Moreover, the fourth quarter's improvements extend progress that started at the beginning of last year. At its current pace, actual profits are on the horizon.
Source Fool.com
