Is it worth adding DraftKings stock to your portfolio amidst Super Bowl 2022 ecstasy?

0

DraftKings Inc. (NASDAQ:DKNG) is a company that hit the news headlines this week, particularly pertinent to the weekend’s super bowl event. DraftKings is one of, if not the largest sports betting platform in the United States.

This is one of the reasons why we wanted to highlight the company in today’s article, the other reason being that the company will be announcing earnings later this week. The date is anticipated to be February 18th, and we are expecting that the earnings report will be released after hours.

How is DraftKings stock performing?

Source – TradingView

As you can see from the DraftKings stock chart, the stock has continued to lose quite a bit of value, which is not quite a surprise as we’ve seen the tech and high growth sector get pounded over the course of the past few months. 

DraftKings stock was as high as around $28 a share before falling to where it is today around $23.33. Irrespective of this recent drop, over the course of the past year, the stock performed very well during the Covid-19 pandemic and during a high stimulus time period. However, the threat of oncoming interest rate increases and anticipated market corrections has made the stock to plummet. 

When DraftKings went public, a few years ago, they traded at $10 a share and they have gone all the way up as high as $74 a share, before coming back to current levels. If you look at the valuation of the company, compared to their peers, then you can see that the company is currently trending about twice as high as the industry average in the price to sales ratio.

Final thoughts

With the super bowl frenzy and hype expected to be this week’s storyline, we expect DraftKings to add additional shares as they are a major sponsor for the NFL. However, we still don’t expect to see that additional revenue in the first or second quarter. So, we’ll see how they do, but all in all the company has very high growth from a revenue perspective.

The post Is it worth adding DraftKings stock to your portfolio amidst Super Bowl 2022 ecstasy? appeared first on Invezz.