DKNG stock has risen by about 13% over the past year and 2% year-to-date. DraftKings (DKNG), an online sports entertainment and gaming company, will release its Q2 earnings on August 1. Analysts expect DKNG to report a loss of 0.01 per share, versus a loss of 0.17 in the year-ago quarter. Meanwhile, analysts expect revenues of $1.11 billion, reflecting a 27% year-over-year increase, according to TipRanks’ data.
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In terms of last quarter earnings results, DKNG reported strong Q1 numbers, achieving top-line growth of about 53% and successfully reducing its losses. The company has continued to focus on growth while also striving for operational efficiencies. So, it will be interesting to see if DraftKings can maintain its top-line growth in Q2 and what impact this will have on its share price.
Website Traffic Reflects Weakness in Q2
TipRanks’ Website Traffic Tool offers information on how a company’s website domain performed over a specific time frame. As DraftKings is solely an online operator, the total number of website visits can be a good indicator of user involvement on its platform.
Even though analysts expect a 27% growth in revenues, TipRanks’ website traffic screener reveals that traffic decreased for DKNG in Q2, indicating weak top-line numbers. According to the tool, total global visits to draftkings.com decreased 33.17% sequentially and 2.05% on a year-over-year basis.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 10.96% move in either direction.
What Is the Price Target for DKNG Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DKNG stock based on 16 Buys and one Hold assigned in the past three months, as indicated by the graphic below. The average DKNG stock price target is $51.88, implying an upside potential of 44.63%.
Bottom Line
Although analysts’ estimates indicate strong revenue growth for DKNG, TipRanks’ website tool suggests that the company’s top-line numbers could face pressure due to decreased traffic.
