3 Drawbacks to Investing in DraftKings Today
The narrative has shifted for mobile sports-betting stocks as of late. Sentiment was at an all-time high during the heat of the pandemic as consumers relied on online platforms to place their bets. From April 2020 through September 2021, DraftKings (NASDAQ: DKNG) stock rallied more than 400%, reaching levels as high as $72 per share.
Since then, it has been a different story for DraftKings. The stock has plunged nearly 70% in the past six months to just above $14. As a result, investors are now pondering whether or not they should scoop up shares of the online gambling leader. Let's consider.
On the surface, DraftKings seems poised for success. The company's top line grew a walloping 111% year over year in 2021, up to $1.3 billion. As mobile betting becomes more widely accepted and states continue to pass favorable legislation, DraftKings is well-positioned to enjoy superb growth. The company has a commanding 29% share of the online sports betting market, second only to FanDuel, which is owned by Flutter Entertainment.
Source Fool.com
