More importantly, the company's growth story is still in the early innings and its stock likely to recover as profitability gets closer. At maturity, management forecasts it will generate $5 billion to $7.3 billion in North American revenue.Īnalysts don't expect Draft Kings to turn a profit until 2023 which means the stock will have another year of finding favor with meme stock traders who tend to prefer money-losing businesses. DraftKings is the leading player in this space with a presence in more states than any other competitor and market share gains that are padding its advantage. The North American online sports betting and iGaming markets combined are an estimated $67 billion opportunity and are expected to grow rapidly over the next few years as more states and jurisdictions enact favorable legislation. Rising regulatory pressures have also weighed on the stock but these too are likely to be short-lived.ĭraft Kings' long-term growth opportunity is still intact as is its leadership position. The good news, however, is that the daily fantasy sports leader's recent woes have been largely tied to temporary pandemic headwinds. Will DraftKings Stock Recover?ĭraft Kings ( NASDAQ:DKNG) stock is at risk of recording its first four month losing streak since taking the market by storm in its early SPAC days. As costs associated with the new strategy diminish, top line growth could lend way to a return to profitability-and a return of fundamentalists and meme traders alike. Expansion into collectibles, toys, non-fungible tokens (NFTs), and blockchain are also reasons to be excited about GameStop's growth prospects.įor now, GameStop appears to be back to trading on fundamentals with transformation developments playing a key role. Sales continued to trend higher in the most recent quarter led by a 62% jump in hardware and accessories sales. The ugly headline numbers and lack of clear guidance have really hurt GameStop stock, but there have been some encouraging silver linings. GameStop has closed 449 stores since last Halloween as part of a dramatic shift to e-commerce. Last quarter, the world's biggest video game retailer posted a much wider than forecast loss due to elevated expenses related to its transformation to a technology business. The inevitable reckoning has come in the wake of back to back quarterly reports that fell well short of expectations. There have been several flare-ups along the way, but the king of all meme stocks has trended decidedly lower since June. What is Driving GameStop's Stock Price?Īlmost a year removed from skyrocketing as high as $483, GameStop ( NYSE:GME) is trading around $143. Here are three that are worth buying before the New Year's celebration unfolds. A flip of the calendar to January 2022 could be all it takes for social media driven meme plays to come back in style. That's because with two weeks left in the year, tax loss selling pressure exerted by bandwagon traders that jumped into volatile meme plays on the way down will soon subside. Fortunately, for meme lovers, a turnaround may be near.
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