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- 1 DraftKing Inc. is facing a lawsuit by Pomerantz LLP regarding DK Marketplace.
- 2 Cathie Wood changed her position in DraftKing, now owns 5.57% of outstanding company stock.
DraftKing Inc. (NASDAQ: DKNG) is a digital sports entertainment and gaming company. They offer multichannel sports betting and gaming technologies used by sports and gaming entertainment operations in 17 states. Cathie Wood changed her position in DraftKing, and the company faces a lawsuit concerning NFTs sales by the DK marketplace.
Financial Analysis of DraftKing Inc.
Founded in 2011, with headquarters in Boston, Massachusetts, DraftKing operates through its brand in 5 states. Operate Golden Nugget Online Gaming and iGaming product and gaming brands in 3 States.
Ark Invest’s Cathie Wood holds the 9th most significant position in DraftKing, worth $550 Million and 3.94% of their equity portfolio. She also owns 5.57% of the outstanding company stocks. She first bought the position during Q1 2021; since then, Wood has purchased shares six times and sold them once. Cathie’s estimated purchase price is around $1.15 Billion, with a loss of 52%.
DraftKing announced its plan to launch DK Marketplace, a platform offering curated NFTs drop for USD purchase and support for secondary market transactions, on July 21, 2021. They sold the first NFT featuring football player Tom Brady on August 11, 2021, and sold from $12 to $15,000 per NFT.
The lawsuit by Pomerantz LLP is investigating claims on behalf of its investor. They allege that DraftKing and some of its officers were involved in unregistered securities fraud and certain unlawful business activities. Also, it claims that the NFT sale constitutes unregistered securities, and with the DK marketplace, they are operating an unregistered securities exchange.
At press time, DraftKing (NASDAQ: DKNG) was trading at $21.97 after gaining 2.76%, previous close and open were both at $21.38. With an average volume of 12.79 Million shares, its market cap stands strong at $10.144 Billion. The fifty-two-week change was a gain of 49.66%. The price target is $22.57, with an upside of 2.7%.
Concerning December 2022 data, Revenue jumped by 80.67% from $855.13 Million, while revenue per share was $5.13, and the quarterly revenue growth hiked by 80.70%. The operating expense gained 6.37% from $599.15 Million; net income hopped 25.62% from negative $242.70 Million. The net profit margin leaped 58.83% from negative $28.38.
Earnings Per Share (EPS) jumped 37.32% from negative $0.50, and EBITDA gained 41.72% from negative 181.18 Million. The last earnings were reported on February 12, 2023, where the estimated revenue was $802.47 Million, while it was reported to be $855.133 Million. This came with a surprise of 52.663 Million and a raise of 6.56%. The subsequent earnings are scheduled on May 4, 2023, with expected revenue of $693.19 Million.
DraftKing Inc. (NASDAQ: DKNG) – Candle Exploration
Current position is DKNG’s third attempt for a breakout above the $21 mark towards the supply zone. It is said that the third time’s the charm; it might break into the supply zone. An upward-moving EMA and positive MACD booth support its northbound momentum.
However, if the price drops, it might bounce off the $19.49 mark and consolidate below the supply zone. Moreover, the possibility of a drawdown would depend on multiple factors.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
