Why DraftKings Shares Are Moving Today
Portfolio Pulse from Vaishali Prayag
DraftKings Inc. (NASDAQ:DKNG) shares fell by 10.8% after reporting mixed Q2 2024 financial results. Despite a 26% revenue growth and increased customer engagement, the company saw a 15% decline in Average Revenue per Monthly Unique Payer (ARPMUP). Analysts maintained positive ratings but lowered price targets due to profitability concerns. DraftKings raised its FY 2024 revenue guidance but revised its Adjusted EBITDA guidance downward.
August 02, 2024 | 7:29 pm
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NEGATIVE IMPACT
DraftKings shares fell 10.8% after mixed Q2 2024 results. Revenue grew 26%, but ARPMUP fell 15%. Analysts maintained positive ratings but lowered price targets. FY 2024 revenue guidance was raised, but Adjusted EBITDA guidance was revised downward.
The significant drop in share price is due to mixed financial results, including a decline in ARPMUP and revised EBITDA guidance. Despite positive revenue growth and analyst ratings, the lowered price targets and profitability concerns have negatively impacted investor sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100