DraftKings' stock is soaring months after its reverse merger and market debut, despite the fact there are little in the way of ballgames for gamblers. However, analysts are bullish on the stock, even after shares rose 270% in 2020.
A Jefferies report said the company is "best positioned to capitalize" as bettors get back to wagering, and as some sports in the US attempt to come back online.
DraftKings' Twitter Follower Count maintained an impressive trajectory of growth, that only recently has begun to level off - likely owing to the total lack of sports to gamble on, for a while. It's notable, however, that in 2019 as individual state legislatures approved gambling laws to open up new markets to apps like DraftKings' engagement sharply increased, around numerous votes.
Going forward, Jefferies report states, "post-COVID, the engagement with digital leisure, the pent-up appetite for sports and political realities should position DraftKings to accel," which may show up in our next chart, too.
DraftKings may not be gaining many new Twitter followers, but people are still giving the app good ratings in the Apple Store. Although the pace of ratings submitted has fallen, it's still up nearly 40% so far in 2020. And, ratings in the Apple Store reflect happy users, currently higher than 4.8-out-of-5.
And people keep talking up the app, at critical times. More, importantly, the biggest season for DraftKings' chatter - the NFL - is still planned to be taking place. How do we know the NFL season correlates to this? The biggest spikes in the graph, from 2020, in February, and in 2017, in early September, reflect the precise timing of those years' Super Bowl and kickoff week, respectively. The NFL could mean big business to DraftKings.
There's a good reason for all the hype, per SportsHandle: "During the first three months of 2020, DraftKings captured a 32% share of the legal sports market in New Jersey, according to Irvine, Calif., gaming firm Eilers & Krejcik, putting it second only to FanDuel at 44%."
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales, and app ratings - and creates data sets that measure factors like hiring, revenue, and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.