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. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More » 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 b...