DraftKings will report its third-quarter earnings Friday and eyes will be watching the stock throughout the following days.
DraftKings stock opened Monday at $14.74, which is 69.9% of that 52-week high and 79.5% of the all-time high of $71.98 in March 2021.
DKNG stock is lapping 52-week highs right now, with the current rolling year high standing at the $49.02 close from last Nov. 1. The stock has dropped substantially since then, hitting a low of $10.72 on June 16, and has failed to gain much positive momentum since then.
The DKNG earnings call kicks off at 8:30 am EDT Friday.
DraftKings stock saw good volume last year
Expect a surge in the stock’s trading volume around the earnings call. The stock was traded 30.3 million times the Thursday before the call last year, with investors gambling on both sides: either trying to buy at a bargain before a good report or selling before a bad one. That volume was about 2.5 times the previous day’s volume.
DKNG saw a premarket dip the day of its third-quarter earnings report last year after the company reported an adjusted EBITDA loss of $314 million, while spending $304 million on sales and marketing.
The investor call helped rally the stock, though, with DKNG closing up from its pre-market dip on 37.3 million volume. The positive momentum did not last long, as the stock started its steady decline the following week.
What could jump-start DKNG stock from this call?
DraftKings already has one thing going for Friday’s call in NFL betting results. September was a strong month for sportsbooks, so expect the company to emphasize those results as others have so far.
Investors would also like to see a better adjusted EBITDA result, which goes hand-in-hand with those marketing costs. Both FanDuel and DraftKings have kept their feet on the advertising pedal a bit more than other operators. As Entain‘s CEO stated on its recent trading update, an overall more rational promo environment to start the NFL season should see that marketing spend come down.
Any positive news out of Ontario sports betting could be a boost for the stock as well. CEO Jason Robins noted the Ontario launch was “going as expected” during its second-quarter earnings call, which suggested it was dragging behind US launches.
Looking for growth in parlays
DraftKings saw solid parlay growth in the second quarter, with the percentage of mobile bets that were parlays up 17 percentage points from the prior year.
Robins said “we’re obviously not done” when it comes to its parlay product and hopes to see that parlay mix continue to increase.
FanDuel‘s same-game parlay offering historically holds more than DraftKings, to date.