Sports Betting Update

DraftKings Inc. - Ordinary Shares - Class A

Consumer, TMT


Presented:08/21/2023
Price:$27.29
Cap:$12.66B
Current Price:$38.14
Cap:$18.52B

Presented

Date08/21/2023
Price$27.29
Market Cap$12.66B
Ent Value$12.49B
P/E RatioN/A
Book Value$2.20
Div Yield5.78%
Shares O/S463.98M
Ave Daily Vol12,004,165
Short IntN/A

Current

Price$38.14
Market Cap$18.52B
DraftKings, Inc. is a digital sports entertainment and gaming company, which engages in the provision of online sports betting, online casino, daily fantasy sports product offerings, DraftKings Marketplace, retail sportsbook, media, and other consumer product offerings. The company was founded by Jason D. Robins, Matthew Kalish, and Paul Liberman on December 31, 2011 and is headquartered in Boston, MA.

Publicly traded companies mentioned herein: DraftKings Inc (DKNG), Flutter Entertainment PLC (FLTR LN), Penn Entertainment Inc (PENN), Walt Disney Co/The (DIS)

Highlights

The presenter provided an update on the sports betting landscape given the industry’s volatility over the past few weeks driven by the PENN/ESPN deal and Fanatics Sportsbook launching in four states. He ultimately thinks these headlines will prove to be noise and is long shares of FanDuel owner Flutter Entertainment PLC (FLTR LN) and DraftKings Inc (DKNG), as both have seen share price declines despite their duopolistic position in the US with ~80% combined market share. He is also short shares of Penn Entertainment Inc (PENN), seeing downside from the current $23 per share to $10 based on the view that it will destroy its FCF profile and shareholder value by aggressively pursuing a losing effort.

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Idea Discussion

Commentor 1 - 2 weeks ago

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