Why Is DraftKings Stock in the Spotlight Today?

DraftKings (NASDAQ:DKNG) stock is on the minds of investors lately after the sports betting company released results for the first quarter of 2022.

Image of the DraftKings app on a smartphone screen representing DKNG stock.

Source: Tada Images / Shutterstock.com

Starting off that earnings report is revenue of $417 million. That’s above the $412.01 million that analysts were expecting for the quarter. It’s also a 34% year-over-year increase from $312 million.

It’s worth noting that DraftKings didn’t include earnings per share data in its current earnings report. Even so, Wall Street’s estimate for the period was -$1.15 per share.

The current DraftKings earnings report also includes a guidance update for 2022. This has it increasing its revenue outlook to between $1.925 billion and $2.025 billion. The previous range was $1.85 billion to $2 billion. For the record, Wall Street is looking for revenue of $1.98 billion for the year.

Jason Robins, co-founder and CEO of DraftKings, had the following to say in the company’s earnings report.

We are not seeing any impact from inflationary pressures on customer demand, and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sports betting and iGaming products. We are also improving our efficiency in acquiring and retaining customers and have a strong pipeline of new jurisdictions to enter.

DKNG stock trading is approaching the company’s daily average of 25.4 million shares. As of this writing, some 23.5 million shares had traded as of noon Thursday.

DKNG stock is down 4% noon Friday after trading higher in pre-market hours. The stock is also down 50.1% since the start of the year.

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On the date of publication, William White 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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/why-is-draftkings-stock-in-the-spotlight-today/.

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