Draftkings Stock Price Prediction

DKNG Stock  USD 45.41  0.06  0.13%   
As of 28th of March 2024, The relative strength indicator of DraftKings' share price is at 52 suggesting that the stock is in nutural position, most likellhy at or near its resistance level. The main idea of RSI analysis is to track how fast people are buying or selling DraftKings, making its price go up or down.

Oversold Vs Overbought

52

 
Oversold
 
Overbought
DraftKings stock price prediction is an act of determining the future value of DraftKings shares using few different conventional methods such as EPS estimation, analyst consensus, or fundamental intrinsic valuation. The successful prediction of DraftKings' future price could yield a significant profit. Please, note that this module is not intended to be used solely to calculate an intrinsic value of DraftKings and does not consider all of the tangible or intangible factors available from DraftKings' fundamental data. We analyze noise-free headlines and recent hype associated with DraftKings, which may create opportunities for some arbitrage if properly timed.
Below are the key fundamental drivers impacting DraftKings' stock price prediction:
EPS Estimate Next Quarter
(0.33)
EPS Estimate Current Year
(0.14)
EPS Estimate Next Year
0.79
Wall Street Target Price
49.19
EPS Estimate Current Quarter
0.08
It is a matter of debate whether stock price prediction based on information in financial news can generate a strong buy or sell signal. We use our internally-built news screening methodology to estimate the value of DraftKings based on different types of headlines from major news networks to social media. The DraftKings stock price prediction module provides an analysis of price elasticity to changes in media outlook on DraftKings over a specific investment horizon. Using DraftKings hype-based prediction, you can estimate the value of DraftKings from the perspective of DraftKings response to recently generated media hype and the effects of current headlines on its competitors. We also analyze overall investor sentiment towards DraftKings using DraftKings' stock options and short interest. It helps to benchmark the overall future attitude of investors towards DraftKings using crowd psychology based on the activity and movement of DraftKings' stock price.

DraftKings Short Interest

A significant increase or decrease in DraftKings' short interest from the previous month could be a good indicator of investor sentiment towards DraftKings. Short interest can provide insight into the potential direction of DraftKings stock and how bullish or bearish investors feel about the market overall. An investor who is long DraftKings may also wish to track short interest. As short interest increases, investors should be becoming more worried about DraftKings and may potentially protect profits, hedge DraftKings with its derivative instruments, or be ready for some potential downside.
200 Day MA
33.7099
Short Percent
0.0382
Short Ratio
1.21
Shares Short Prior Month
16.7 M
50 Day MA
41.8476

DraftKings Hype to Price Pattern

Investor biases related to DraftKings' public news can be used to forecast risks associated with an investment in DraftKings. The trend in average sentiment can be used to explain how an investor holding DraftKings can time the market purely based on public headlines and social activities around DraftKings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. The correlation of DraftKings' market sentiment to its price can help taders to make decisions based on the overall investors consensus about DraftKings.

DraftKings Implied Volatility

    
  67.44  
DraftKings' implied volatility exposes the market's sentiment of DraftKings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if DraftKings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that DraftKings stock will not fluctuate a lot when DraftKings' options are near their expiration.
This module is based on analyzing investor sentiment around taking a position in DraftKings. This speculative approach is based exclusively on the idea that markets are driven by emotions such as investor fear and greed. The fear of missing out, i.e., FOMO, can cause potential investors in DraftKings to buy its stock at a price that has no basis in reality. In that case, they are not buying DraftKings because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. On the other hand, investors will often sell stocks at prices well below their value during bear markets because they need to stop feeling the pain of losing money.

DraftKings after-hype prediction price

    
  USD 45.61  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.

Prediction based on Rule 16 of the current DraftKings contract

Based on the Rule 16, the options market is currently suggesting that DraftKings will have an average daily up or down price movement of about 4.21% per day over the life of the 2024-03-28 option contract. With DraftKings trading at USD 45.41, that is roughly USD 1.91 . If you think that the market is fully incorporating DraftKings' daily price movement you should consider acquiring DraftKings options at the current volatility level of 67.44%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Check out DraftKings Basic Forecasting Models to cross-verify your projections.
For more detail on how to invest in DraftKings Stock please use our How to Invest in DraftKings guide.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of DraftKings' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Intrinsic
Valuation
LowRealHigh
36.8739.5749.89
Details
Naive
Forecast
LowNextHigh
44.7047.4150.11
Details
32 Analysts
Consensus
LowTargetHigh
32.9136.1740.15
Details
Earnings
Estimates (0)
LowProjected EPSHigh
-0.35-0.29-0.08
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as DraftKings. Your research has to be compared to or analyzed against DraftKings' peers to derive any actionable benefits. When done correctly, DraftKings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in DraftKings.

DraftKings After-Hype Price Prediction Density Analysis

As far as predicting the price of DraftKings at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in DraftKings or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of DraftKings, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

DraftKings Estimiated After-Hype Price Volatility

In the context of predicting DraftKings' stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on DraftKings' historical news coverage. DraftKings' after-hype downside and upside margins for the prediction period are 42.91 and 48.31, respectively. We have considered DraftKings' daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
45.41
45.61
After-hype Price
48.31
Upside
DraftKings is very steady at this time. Analysis and calculation of next after-hype price of DraftKings is based on 3 months time horizon.

DraftKings Stock Price Prediction Analysis

Have you ever been surprised when a price of a Company such as DraftKings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading DraftKings backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with DraftKings, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.45 
2.70
  0.26 
  0.10 
11 Events / Month
4 Events / Month
In about 11 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
45.41
45.61
0.57 
473.68  
Notes

DraftKings Hype Timeline

DraftKings is currently traded for 45.41. The entity has historical hype elasticity of 0.26, and average elasticity to hype of competition of -0.1. DraftKings is estimated to increase in value after the next headline, with the price projected to jump to 45.61 or above. The average volatility of media hype impact on the company the price is over 100%. The price rise on the next news is projected to be 0.57%, whereas the daily expected return is currently at 0.45%. The volatility of related hype on DraftKings is about 1235.29%, with the expected price after the next announcement by competition of 45.31. The company reported the previous year's revenue of 3.67 B. Net Loss for the year was (802.14 M) with profit before overhead, payroll, taxes, and interest of 756.19 M. Given the investment horizon of 90 days the next estimated press release will be in about 11 days.
Check out DraftKings Basic Forecasting Models to cross-verify your projections.
For more detail on how to invest in DraftKings Stock please use our How to Invest in DraftKings guide.

DraftKings Related Hype Analysis

Having access to credible news sources related to DraftKings' direct competition is more important than ever and may enhance your ability to predict DraftKings' future price movements. Getting to know how DraftKings rivals react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how DraftKings may potentially react to the hype associated with one of its peers.

DraftKings Additional Predictive Modules

Most predictive techniques to examine DraftKings price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for DraftKings using various technical indicators. When you analyze DraftKings charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.

About DraftKings Predictive Indicators

The successful prediction of DraftKings stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as DraftKings, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of DraftKings based on analysis of DraftKings hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to DraftKings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to DraftKings's related companies.
 2021 2022 2023 2024 (projected)
Dividend Yield0.120.0038770.0044590.004236
Price To Sales Ratio8.532.224.454.23

Story Coverage note for DraftKings

The number of cover stories for DraftKings depends on current market conditions and DraftKings' risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that DraftKings is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about DraftKings' long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

DraftKings Short Properties

DraftKings' future price predictability will typically decrease when DraftKings' long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of DraftKings often depends not only on the future outlook of the potential DraftKings' investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. DraftKings' indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding462.6 M
Cash And Short Term Investments1.3 B
When determining whether DraftKings is a strong investment it is important to analyze DraftKings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact DraftKings' future performance. For an informed investment choice regarding DraftKings Stock, refer to the following important reports:
Check out DraftKings Basic Forecasting Models to cross-verify your projections.
For more detail on how to invest in DraftKings Stock please use our How to Invest in DraftKings guide.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running DraftKings' price analysis, check to measure DraftKings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DraftKings is operating at the current time. Most of DraftKings' value examination focuses on studying past and present price action to predict the probability of DraftKings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DraftKings' price. Additionally, you may evaluate how the addition of DraftKings to your portfolios can decrease your overall portfolio volatility.
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Is DraftKings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DraftKings. If investors know DraftKings will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DraftKings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.73)
Revenue Per Share
7.923
Quarterly Revenue Growth
0.439
Return On Assets
(0.12)
Return On Equity
(0.74)
The market value of DraftKings is measured differently than its book value, which is the value of DraftKings that is recorded on the company's balance sheet. Investors also form their own opinion of DraftKings' value that differs from its market value or its book value, called intrinsic value, which is DraftKings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DraftKings' market value can be influenced by many factors that don't directly affect DraftKings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DraftKings' value and its price as these two are different measures arrived at by different means. Investors typically determine if DraftKings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DraftKings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.