IB Net Payout Yields Model

DraftKings: Missed The Inflection Point Bottom


  • DraftKings has shifted from reporting large losses to achieving EBITDA profits, making the stock more attractive to investors.
  • The company forecasts a surge in the total addressable market for sports gaming, with a revenue target of $7.1 billion by 2028.
  • The stock is still relatively cheap at ~8.5x the 2028 EBITDA targets without any additional states gaining legalization.
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Unfortunately, DraftKings (NASDAQ:DKNG) wasn't on the watchlist last Spring when the stock traded below $15 with the company reporting large losses. The sports gaming company was maligned for those large ongoing losses, and the sudden shift to EBITDA profits places the stock in a different light by investors. My investment thesis is still Bullish on the stock due to the attractive valuation, though one might want to wait for a pullback to buy shares.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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