DraftKings Inc. (DKNG) stock came rising 3.44 percent on Thursday bringing the price up to $49.32 at close of the trading.
The digital sports entertainment and gaming company recently came up announcing mixed quarterly results last week but has improved its full year 2020 as well as 2021 forecast.
Offering sports betting and online sports betting, DraftKings Inc. (NASDAQ: DKNG) has improved its own outlook for the end of this year and next.
In 2020, sales will be in the range of $540 million to $560 million, which is a 20-30 percent rise, according to DraftKings’ estimate. The previous estimate, for the same was to be in a $500-$540 million revenue range. An initial forecast for 2021 was also provided by the company. Revenues are projected to rise further by 45 percent, which will raise annual sales to $750-$850 million. However, the company stated that it has considered almost no negative scenarios in the outlook for 2021, which means the company provided the 2021 forecast assuming sporting events to be going as normal.
DraftKings sales rose by 98 percent at one point in the third quarter. This was primarily due to Diamond Eagle’s acquisition and incorporation. Even without this acquisition, however the company’s revenue increased year-on-year by more than 40 percent. The resumption of sports competitions in the National Basketball Association, Major League baseball and the National Hockey League was the driver of growth. It was the resumption of traditional sports tournaments that helped increase the active user base of DraftKings to more than 1 million by 64 percent.
Thus, investors are more positive about the prospects of DraftKings as sports competitions resume. Moreover, in the US, more and more states are lifting the prohibition on online betting, which also increases the target audience of the business.
DraftKings Inc. (DKNG) shares tripled in value since start of the year and its market valuation currently stands at $17.96 billion.