DraftKings Q3 Results Lead To Major Swings In Stock
DraftKings Sportsbook has had a volatile November in terms of its place on the stock market. DraftKings reported its Q3 earnings earlier this month, and after the numbers were released, the company’s stock tumbled from $15.68 to $11.26. However, since the report was released several weeks ago, the stock has nearly recovered.
Despite the drop in the stock, the company surpassed its own expectations. “Our results in the third quarter significantly exceeded the expectations that we provided on our second quarter earnings conference call,” said Jason Park, Chief Financial Officer, during the earnings call. The company attributes this to three things: increases in players, strategic marketing choices, and improvements to the app.
Market Outlook For DraftKings Sportsbook MA
DraftKings has seen an increase in monthly unique players, which now sits around 1.6 million each month. This is a 22% increase from the same time last year. This is in part because DraftKings is able to retain players year after year. It’s also due to the ongoing efforts in marketing and app improvements.
The company has been able to focus on nationally-scaled marketing efforts, which saves money in the long-run. One special project DraftKings has launched is its multi-year partnership with Amazon Prime. Amazon will feature special offers and content, as well as DraftKings odds integrations the football pre-game shows. This year, DraftKings will be featured on all 15 NFL games shown on Prime.
The app continues to evolve as DraftKings expands its content offerings and functionality. The company has been focused on parlays: quick parlay, quick same-game parlay, and the ability to combine same-game parlays. It has also added head-to-head matchups, multi-player props, play flash markets, and full-time and anytime squares for every game of the season.
DraftKings still expects to be profitable in the 4th quarter of 2022.
DraftKings Stock Takes Another Dip
DraftKings stock dropped again on November 13 after the company confirmed that an unknown number of accounts had been hacked. Around $300,000 had been taken from the hacked accounts.
DraftKings issued a statement on the hack via Twitter:
— DraftKings News (@DraftKingsNews) November 21, 2022
Users who were impacted will be made whole, but the company encouraged customers to update their passwords to something unique to prevent future hacking. Since the hacking incident, the stock has recovered to nearly where it was before the earnings call. As of close on November 23, each stock is worth $15.36.