

The decision to buy DraftKings (DKNG) stock should be based on a comprehensive analysis of various factors, including your investment strategy, risk tolerance, and the current market conditions. Here's some information to help you make an informed decision:
- Current Stock Performance: As of July 3, 2024, the closing price of DKNG was $37.691. This is a snapshot of the stock's performance on that particular day and does not necessarily indicate a trend.
- Financial Metrics:
- The P/E ratio as of June 30, 2024, is -32.692, which is negative and suggests that the company is not profitable based on the EPS calculations.
- The company's EPS has been negative in recent quarters, with the most recent being -$0.3 as of May 2, 20243.
- The ROE has been negative, with the most recent being -17.06% as of March 31, 20244.
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Analyst Ratings and Price Targets:
- Analysts have given DKNG a consensus rating of Strong Buy5 with an average price target of $54.046, indicating potential upside.
- However, a more conservative 12-month forecast from Wall Street analysts suggests an average price target of $52.80, representing a 23.14% upside from the last price of $43.217.
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Market Sentiment and Forecasts:
- The Fear & Greed Index is showing 39 (Fear), suggesting that the stock may be undervalued at the current price8.
- Long-term forecasts for DKNG suggest significant growth potential, with predictions for the stock price to reach $69.91 by the end of 20258.
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Recent Developments: DraftKings has raised its guidance for 2024 revenue, expecting it to be between $4.8 billion and $5 billion9, which could be a positive sign for the company's future performance.
Given these points, it appears that while there are some negative financial metrics, the consensus rating and long-term forecasts suggest potential for growth. However, the decision to buy should be based on your individual investment strategy and risk tolerance. If you are considering a long-term investment and are comfortable with the risks associated with the gaming industry, the current price of DKNG could be considered in light of the potential upside suggested by the analyst ratings and the company's growth prospects. It's also advisable to keep an eye on the company's earnings reports and any regulatory developments that could impact the stock's performance.
