DraftKings Is Set for Growth With Strong Q2 Results and Partnerships

Online gambling app DraftKings (NASDAQ:DKNG) has certainly had an excellent year. The company made the most of the pandemic and built strong partnerships to build a path for future growth. DKNG stock emerged in 2020 through a blank check merger and there is no stopping the company’s momentum. 

Draft Kings appDespite the pandemic, DraftKings has seen increases in its user numbers and its market share. With more states legalizing sports betting, the company has grown significantly. Today, it is one of the top players in the massive sports betting industry.

Over the past year, DKNG stock has gone from $30 to an all-time high of $74 in March and is down to $54 today. I am bullish on the stock and believe it has a long way to go. With that in mind, let’s dig deeper into the driving forces behind DKNG stock. 

DKNG Stock and Stellar Q2 Results 

The company recently released Q2 earnings and it easily beat analyst forecasts. DraftKings reported a better-than-expected quarter with a loss of 26 cents per share and revenue of $298 million, which is a 320% rise. That is no small feat. 

The monthly unique players increased by 281% to 1.1 million and the average revenue per monthly unique player hit $80, which is up 26% year-over-year (YOY).

This is a clear sign that DraftKings is attracting users with its unique marketing strategies and its revenue is only trending upward. If the company continues to increase the average revenue per monthly unique player, it will gain a strong position in the industry. 

DraftKings has increased the full-year revenue target to $1.21 to $1.29 billion, which would be up to 100% YOY growth. This is proof that the company confidently expects higher user growth and revenue generation in the coming quarter.

Strategic Partnerships That Will Lead Growth 

DraftKings is known for strong partnerships in the ever-expanding industry. The company has already made impressive acquisitions and deals over the past year, and it does not appear ready to slow down anytime soon.

The company recently acquired Golden Nugget (NASDAQ:GNOG), an online gambling service, for an all-stock transaction worth $1.56 billion. The deal will help increase revenue and attract new users to DraftKings. 

Further, it has announced a multi-year deal with Genius Sports (NYSE:GENI), a National Football League (NFL) data provider. With this multi-year sports data agreement, DraftKings will get access to a full portfolio of sports data and content, including official NFL data. 

These are two of many partnerships the company has formed to increase growth. It is already an official sports betting partner of the NFL, which can boost its profile and help DraftKings continue to expand.

The Bottom Line on DKNG Stock 

As the pandemic slowly changes how we engage with sports, DraftKings has a lot to look forward to. It has a growing user base in different states which will continue to push revenue higher. I also believe its newly-launched NFT platform will work in favor of the company and eventually attract new users to the platform. 

We will see a lot of action around the start of this year’s football season. This is when DraftKings will make the right moves to widen its market share and grow revenue. A company will only raise its guidance if it is confident it can match or beat its forecast, and DraftKings looks set to dominate the market. 

The company is one of the biggest players in the sports betting industry. With strategic acquisitions and partnerships, DraftKings is putting its money in the right place. DKNG stock is a buy as it heads closer to $70. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.


Article printed from InvestorPlace Media, https://investorplace.com/2021/08/dkng-stock-is-set-for-growth-with-strong-q2-results-and-partnerships/.

©2021 InvestorPlace Media, LLC