Consider the Fundamentals Before Investing in DraftKings

Shares of Consumer Discretionary sector company DraftKings moved 0.3% today, and are now trading at a price of $35.47. The mid-cap stock's daily volume was 3,404,233 compared to its average volume of 12,840,468. The S&P 500 index returned a 1.0% performance.

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company is based in Boston and has 4,200 full time employees. Its market capitalization is $16,535,272,448.

31 analysts are following DraftKings and have set target prices ranging from $22.5 to $50.0 per share. On average, they have given the company a rating of buy. At today's prices, DKNG is trading -11.05% away from its average analyst target price of $39.87 per share.

Over the last year, DKNG's share price has increased by 203.2%, which represents a difference of 179.6% when compared to the S&P 500. The stock's 52 week high is $39.35 per share whereas its 52 week low is $10.69. DraftKings has averaged free cash flows of $-388480750.0 over the last 4 years, with a mean growth rate of -12.5%. It is unlikely that the stock can sustain its current performance trend for the long term when the underlying business is experiencing such poor cash flows.

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023 -222,276 32,384 -254,660 61.29
2022 -625,519 32,402 -657,921 -51.1
2021 -419,508 15,925 -435,433 -111.47
2020 -194,157 11,752 -205,909
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.