How to Buy Draftkings Stock
Draftkings Inc
DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries.
Draftkings stock last closed at $23.38, down 1.31% from the previous day, and has increased 64.19% in one year. It has overperformed other stocks in the Gambling industry by 0.6 percentage points. Draftkings stock is currently +122.35% from its 52-week low of $10.52, and -11.46% from its 52-week high of $26.41.
At the moment, there are 854.88M shares of DKNG outstanding. The market value of DKNG is $19.99B. In the past 24 hours, 9.44M DKNG shares were traded.
How to Buy Draftkings Stock
Wondering how to invest in Draftkings stock? Here's how.
- Decide where to buy Draftkings stock: You need to decide on a stock brokerage, but don't worry - we've researched dozens of stock brokerages and apps to help you determine where to buy Draftkings stock.
- Create your brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've selected.
- Deposit money your investment account: Choose your payment method and add your details.
- Research Draftkings stock: The Draftkings ticker symbol is DKNG. Is Draftkings stock a good investment? Should you buy shares of DKNG? How do DKNG's underlying business fundamentals look? Do top analysts think Draftkings is a good buy? Why has DKNG's stock price moved recently? (Hint: Our stock market research tools can help you evaluate if DKNG is a good stock to buy).
- Make your DKNG purchase: Decide if you will purchase DKNG shares at the current market price or use a limit order to buy DKNG shares at a particular price.
- Keep an eye on your DKNG investment: Create a watchlist to watch your position in Draftkings shares.
Step 1: Decide where to buy Draftkings stock
You will need a brokerage account to access the NASDAQ market and buy DKNG stock.
Our preferred brokerage: eToro
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Get $10 towards your share purchase by creating an account with eToro now.
Open eToro AccountStep 2: Create your brokerage account
Now that you've chosen the right brokerage, it's time to fill out some personal information so you are able to buy DKNG stock today.
How to Create a New Account on eToro
- Click here to get started.
- Provide your personal data to start a new trading account.
- Submit your details by pressing the "Create Account" button.
Step 3: Deposit money your investment account
Now that you've filled out your info on the best stock trading app, you need to deposit funds:
Watch this video walkthrough if you need help depositing funds into your new investment account.
Step 4: Research Draftkings stock
Once you have decided on the best place to buy Draftkings stock, it's important to research their stock before you buy, so you actually comprehend the risk as well as the upside.
Draftkings stock data
Draftkings Due Diligence Checks
WallStreetZen was built to help everyday investors perform more in-depth fundamental analysis in less time.
You can view all of the due diligence checks on DKNG's stock page.
Is DKNG stock undervalued or overvalued?
You can use a variety of different financial metrics, analyses, models, and charts to gauge DKNG's true value.
Using relative valuations measures:
- DKNG may be overvalued based on its P/B ratio of 19.64x, relative to Gambling industry P/B ratio of 8.33x
You can do more valuation analysis on DKNG's stock here.
DKNG Financial Summary
Positive Health Checks:
- DKNG has cash burn of 571429000. It has sufficient cash and short-term investments to cover this for at least one year.
- There are more short-term assets than short-term liabilities on the DKNG balance sheet.
- DKNG has $1.52B in cash and short term investments. This is enough to cover its annual cash burn of $571.43M.
- There are more short-term assets than long-term liabilities on the DKNG balance sheet.
Negative Health Checks:
- DKNG profit margin has gone up by 0.67 percentage points in the past year, but the company is still unprofitable.
- DKNG has a relatively high debt to equity ratio of 2.67.
Is Draftkings stock a Buy, Hold, or Sell, according to analysts?
Out of 22 sell side analysts who give forecasts on DKNG, the consensus analyst rating on Draftkings is a Buy
Please note that analyst forecasts are not stock recommendations, nor are they financial advice.
Latest DKNG Analyst Ratings
Robin M. Farley, a top 6% analyst from UBS upgrades DKNG to a strong buy rating and raises their DKNG price target from $19.00 to $30.00, on May 22, 2023.
Bernie McTernan, a bottom 1% analyst from Needham reiterates DKNG with a buy rating and maintains their DKNG price target from $36.00 to $36.00, on May 18, 2023.
Stephen Grambling, a bottom 10% analyst from Morgan Stanley maintains DKNG with a strong buy rating and raises their DKNG price target from $23.00 to $25.00, on May 16, 2023.
Currey Baker, a top 26% analyst from Guggenheim maintains DKNG with a strong buy rating and raises their DKNG price target from $27.00 to $32.00, on May 8, 2023.
Edward Engel, a bottom 11% analyst from Roth Capital maintains DKNG with a strong sell rating and raises their DKNG price target from $15.00 to $18.00, on May 8, 2023.
Maintaining his Strong Sell rating, Engel raised his price target on DraftKings Inc. by 20% following the release of the company's Q1 2023 earnings report on 2023/05/04.
The company's revenue growth will "significantly slow over 2024 and 2025," the analyst predicted.
"Investors are overly bullish on DraftKings' ability to generate meaningful EBITD in the next two years," Engel said.
The analyst disagreed with that investor sentiment, arguing that "minimal online sports betting market share gains since Q3 20225, few new state launches, and stalling industry handle in most states" will mean the company's revenue and EBITDA will disappoint in 2024 and 2025.
The stock is up 92.5% YTD against the S&P 500's 6.5% gain.
For Q1 2023, DraftKings reported:
- Loss per share of $0.87, which missed the Zacks Consensus Estimate of $(0.85) but beat, by 23.7%, Q1 2022's $(1.14).
- Revenue of $769.65M, which beat the Zacks Consensus Estimate by 10.01% and Q 2022's 417.21M by 84.5%.
- 2.8M Monthly Unique Payers (MUPs), up 39% Y/Y.
- $92 Average Revenue per MUP (“ARPMUP”), up 35% Y/Y.
For FY 2023, management guided:
- Revenue guidance of $3.135B to $3.235B, up from the previously guided $2.85B to $3.05B. The updated guidance would represent Y/Y growth of 40% to 44%.
- Adjusted EBITDA guidance of $(290M) to $(340M), up from the previously guided $(350M) to $(450M).
CEO and Co-founder Jason Robins commented: “We delivered highly successful online sportsbook launches in Ohio and our home state of Massachusetts and continued to create meaningful product differentiation driven by in-house innovations.
"We acquired customers faster and more efficiently and, importantly, saw healthy retention across cohorts.
"Looking at the remainder of 2023, I am confident DraftKings is well-positioned to achieve profitability on an Adjusted EBITDA basis in the near term and deliver long-term value for our shareholders.”
CFO Jason Park added: “Strong execution across the organization is showing up in our results.
“Revenue grew at a healthy rate due to core drivers around customer acquisition, retention and monetization, including decreased promotional intensity and higher structural hold.
"In addition, our efficiency efforts produced clear results as demonstrated by significant year-over-year increases in gross margin and Adjusted EBITDA.
"Therefore, we are increasing the midpoint of our FY 2023 revenue and Adjusted EBITDA guidance."
You can dive deeper into what analysts are projecting on the Draftkings stock forecast page.
DKNG Trading Indicators
DKNG Performance Numbers
Last year, DKNG revenue was $2.59B. During the last three year, DKNG's revenue has increased by 187.01% per year. This was faster than the Gambling industry average of 82.91%.
Dive into DKNG's earnings and revenue performance here.
Latest Insiders Trades at DKNG
Over the past 12 months, executives and large shareholders at DKNG have sold more shares than they have bought.
R. Stanton Dodge, Chief Legal Officer of DKNG, was the latest DKNG insider to sell. They sold $20,823.66 worth of DKNG stock on May 23, 2023.
Get more info about who owns DKNG shares here.
Can I get consistent income from DKNG stock?
No, Draftkings doesn't provide an income stream by paying out dividends.
What others are saying about DKNG
One of the primary reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to find out what other community members have to say.
Step 5: Make your DKNG purchase
You have two primary types of orders:
- Market order: A market order is an order to buy or sell a security at the best possible price.
Market orders are usually fine for most investors. - Limit order: A limit order enables you to buy or sell a security at a specific price (or better).
If you want to be certain you're buying or selling at a specific price limit, use a limit order.
Hit the Open Trade button and eToro will execute the order.
If you need additional info about buying stocks on eToro, click the helpful video below:
Step 6: Keep an eye on your DKNG investment
Now that you own some DKNG shares, you'll want to keep up with your new company.
Make a watchlist to track your DKNG stock.
DKNG Feed
How to Buy Stock in Draftkings
To summarize, here are the 6 steps to buy stock in Draftkings:
- Decide where to buy Draftkings stock
- Create your brokerage account
- Deposit money your investment account
- Research Draftkings stock
- Make your DKNG purchase
- Keep an eye on your DKNG investment
If you need a brokerage, eToro is our favorite venue.
Get Started with eToro TodayIf you want to get the latest news on your new investment in Draftkings, create your watchlist below.
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