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DraftKings (DKNG) Surges Post Earnings: ETFs in Focus
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Sports-betting company DraftKings (DKNG - Free Report) shares jumped more than 15% on Feb 17, 2023 after the company came out with a quarterly loss of $0.53 per share versus the Zacks Consensus Estimate of a loss of $0.62. This compares to loss of $0.80 per share a year ago.
DraftKings posted revenues of $855.13 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 6.83%. This compares to year-ago revenues of $473.33 million. The company has topped consensus revenue estimates four times over the last four quarters.
DraftKings was the number one most downloaded sportsbook app in the United States on Super Bowl Sunday, said Jason Robins, DraftKings CEO and Co-Founder, quoted on CNBC. States where sports betting became legal recently are also boosting sales.
The company attributed the results to sustained customer retention, acquisition and engagement in existing states, as well as successful launches of its Sportsbook and iGaming products in additional jurisdictions. Average monthly unique payers (MUPs) rose 31% from a year ago to 2.6 million. Average MUP revenue gained 42% to $109.
DraftKings has upped its fiscal year 2023 revenue guidance to a range of $2.85 billion to $3.05 billion from the previously announced range of $2.8 billion to $3 billion. The company said its updated guidance equates to year-over-year growth of 27% to 36%.
The company has also boosted its expected earnings before interest, taxes, depreciation, and amortization (EBITDA) to a decline of $350 million to $450 million, from a loss of $475 million to $575 million.
Against this backdrop, investors may be interested to know about the ETFs DraftKings is heavy on. Below we highlight those ETFs.
The underlying Roundhill Sports Betting & iGaming Index tracks the performance of a tiered-weight portfolio of globally-listed equity securities of companies that are actively involved in the sports betting industry. Draftkings is the top-most holding of the fund with about 8.32% weight. Sportsbook (35.2%), iGaming (23.7%), Technology (20.6%) and Casinos (18.3%) have weights in the four industries. The fund charges 75 bps in fees.
The ARK Next Generation Internet ETF is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily in domestic and U.S. exchange traded foreign equity securities of companies that are relevant to the theme of next generation internet. North America takes about 90.43% of the fund. Draftkings takes about 5.27% weight in the fund. The fund charges 83 bps in fees.
The ARK Fintech Innovation ETF is actively managed and seeks long-term growth of capital. Draftkings takes about 5.20% weight in the fund. The fund charges 75 bps in fees.
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DraftKings (DKNG) Surges Post Earnings: ETFs in Focus
Sports-betting company DraftKings (DKNG - Free Report) shares jumped more than 15% on Feb 17, 2023 after the company came out with a quarterly loss of $0.53 per share versus the Zacks Consensus Estimate of a loss of $0.62. This compares to loss of $0.80 per share a year ago.
DraftKings posted revenues of $855.13 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 6.83%. This compares to year-ago revenues of $473.33 million. The company has topped consensus revenue estimates four times over the last four quarters.
DraftKings was the number one most downloaded sportsbook app in the United States on Super Bowl Sunday, said Jason Robins, DraftKings CEO and Co-Founder, quoted on CNBC. States where sports betting became legal recently are also boosting sales.
The company attributed the results to sustained customer retention, acquisition and engagement in existing states, as well as successful launches of its Sportsbook and iGaming products in additional jurisdictions. Average monthly unique payers (MUPs) rose 31% from a year ago to 2.6 million. Average MUP revenue gained 42% to $109.
DraftKings has upped its fiscal year 2023 revenue guidance to a range of $2.85 billion to $3.05 billion from the previously announced range of $2.8 billion to $3 billion. The company said its updated guidance equates to year-over-year growth of 27% to 36%.
The company has also boosted its expected earnings before interest, taxes, depreciation, and amortization (EBITDA) to a decline of $350 million to $450 million, from a loss of $475 million to $575 million.
Against this backdrop, investors may be interested to know about the ETFs DraftKings is heavy on. Below we highlight those ETFs.
ETFs in Focus
Roundhill Sports Betting & iGaming ETF (BETZ - Free Report)
The underlying Roundhill Sports Betting & iGaming Index tracks the performance of a tiered-weight portfolio of globally-listed equity securities of companies that are actively involved in the sports betting industry. Draftkings is the top-most holding of the fund with about 8.32% weight. Sportsbook (35.2%), iGaming (23.7%), Technology (20.6%) and Casinos (18.3%) have weights in the four industries. The fund charges 75 bps in fees.
ARK Next Generation Internet ETF (ARKW - Free Report)
The ARK Next Generation Internet ETF is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily in domestic and U.S. exchange traded foreign equity securities of companies that are relevant to the theme of next generation internet. North America takes about 90.43% of the fund. Draftkings takes about 5.27% weight in the fund. The fund charges 83 bps in fees.
ARK Fintech Innovation ETF (ARKF - Free Report)
The ARK Fintech Innovation ETF is actively managed and seeks long-term growth of capital. Draftkings takes about 5.20% weight in the fund. The fund charges 75 bps in fees.