Why DraftKings Stock Downright Flew on Friday
Shares of (NASDAQ: DKNG) climbed on Friday after the sports entertainment and gaming company reported its first-quarter financial results and raised its full-year guidance. As of 1:40 p.m. ET, DraftKings stock was up 15.8%.
Usually, DraftKings performs better during the National Football League season, which may have lowered expectations for Q1 considering that the season ended midway through the quarter. However, the company generated revenue of $770 million in Q1, which was an eye-popping 84% year-over-year increase. This blew past analysts' consensus estimate.
DraftKings benefited in Q1 from its expansions into Massachusetts and Ohio. But in my view, there's one pair of stats in the report that all investors should be paying attention to. According to management, the number of new users added grew by 57% year over year during the quarter. However, its customer acquisition cost dropped by 27%. That's a hugely powerful trend if it continues, and rightly got investors fired up Friday.
Source Fool.com
DraftKings Inc. Stock
With 67 Buy predictions and 3 Sell predictions DraftKings Inc. is one of the favorites of our community.
With a target price of 46 € there is a positive potential of 35.45% for DraftKings Inc. compared to the current price of 33.96 €.
