DraftKings is the leading sports and fantasy sports betting platform. Its shares lost 80% form their peak price in 2021. The reason for such a huge drop is more related with deteriorating market sentiment rather than with strong company’s financials.

Revenue of DKNG rose by 34% year-on-year to $417.2 million in the Q1 2022 beating consensus estimates at $411.4 million. Unique visitors numbers grew by 29% year-on-year to 2 million, while RPU topped $67, or 11% yup from the Q1 2021.

The takeover of Golden Nugget Online Gaming was accomplished recently to increase the number of active users by 5.5 million to 20 million. That is also creating excellent opportunities for cross sales over the platform.

The business is highly sensitive to the local legislation in the United States as state authorities are autorised to license gambling business. DraftKings was authorized to expand their business to New-York state in early 2022 making companies services available to 36% of Americans. The company is waiting to be licensed in California and Texas. States of Maryland and Ohio already authorized its business. Altogether with these states the company would have an access to 43% of the population of the United States.

Mid-term target price for DKNG is at $32.