DraftKings (NASDAQ:DKNG) stock is trending on social media and in the financial press today after the company released second-quarter 2022 earnings data. DraftKings exceeded Wall Street’s revenue and earnings expectations for the period. The company also raised its full-year revenue guidance. This development is pushing DKNG stock higher today.
Is online sports betting still a viable market? This is a question that DraftKings answered in dramatic fashion today with its Q2 2022 results. The data included contributions from the company’s acquisition of Golden Nugget Online Gaming, so there was a lot at stake in this quarterly report.
As it turns out, DraftKings’ results included top- and bottom-line beats. The company reported revenue of $466 million, up 57% year over year (YOY) and higher than the $439 million expected by analysts. Although DraftKings’ net earnings loss of 50 cents per share might not sound ideal, it was also better than the 75 cent loss Wall Street had anticipated.
What’s Happening with DKNG Stock?
In the wake of these results, DKNG stock is up 12% as of this writing, threatening to break above $19. The good spirits of traders aren’t just related to the actual data, however. Investors are likely also pleased with DraftKings’ forward guidance.
Specifically, the company now projects full-year 2022 revenue between $2.08 billion and $2.18 billion. This is higher than DraftKings’ previous full-year revenue estimate of $2.05 billion to $2.17 billion.
CEO Jason Robins characterized the company’s customer engagement as “strong.” The CEO said, “We continue to see no perceivable impact from broader macroeconomic pressures.”
That’s a confident statement. Still, the numbers speak for themselves. Perhaps it’s good news not only for DraftKings in particular, but for the online gaming market as a whole — and even for the broader economy. Or, at the very least, it’s enough positive news to keep DKNG stock traders in a great mood today.
On the date of publication, David Moadel did not hold (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.
