\n
In a note to clients after the earnings report, Jefferies analyst David Katz said the big news isn’t the second-quarter loss, but rather the strong revenue guidance. He maintains the view that online casinos and sports betting are the places to be in the gaming space, and that with the benefit of first-mover advantage, DraftKings will ultimately prove successful.<\/p>\n<\/div>\n
During the April through June period, the company went live with sports betting in Colorado and rolled out an internet casino in Pennsylvania.<\/p>\n
\u201cSince the close of the second quarter, DraftKings has launched sports betting in Illinois and iGaming in West Virginia. DraftKings is working to enter Virginia and Tennessee for sports betting and Michigan for sports betting and iGaming,\u201d according to the operator.<\/p>\n
Strong Cash Position<\/h2>\n
While some investors may not be thrilled by DraftKings’ consistent string of quarterly losses, the operator’s balance sheet is strong.<\/p>\n
Following a secondary share offering and warrant redemption, the company added $800 million to its balance sheet in the second quarter, bringing its cash stockpile to $1.2 billion, or 10 percent of its market capitalization entering Friday. DraftKings carries no debt.<\/strong><\/p>\nAdditionally, insiders are bullish on the stock. Regulatory filings released in advance of today’s earnings report indicate co-founders Jason Robins, Paul Liberman, and Matthew Kalish recently bought DraftKings equity.<\/p>\n","protected":false},"excerpt":{"rendered":"
DraftKings (NASDAQ:DKNG) stock is sinking Friday after the sportsbook operator reported a wider-than-expected second-quarter loss. But the company did confirm there’s pent-up demand for sports wagering following the coronavirus shutdown and issued a full-year revenue forecast of $500 million to $540 million. For the June quarter, the daily fantasy sports (DFS) purveyor said it lost […]<\/p>\n","protected":false},"author":46,"featured_media":144956,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"\n
DraftKings Stumbles Following Q2 Loss, But Revenue Forecast Impresses<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n