Will DraftKings Keep Winning in 2021?
Financially, DraftKings (NASDAQ: DKNG) as a company seems primed to only go up. The stock, on the other hand, faces a push and pull between a high valuation and the positive news the company will benefit from. The main factor in the stock's ultimate trajectory is how far out into the future growth of the company are investors willing to speculate. So far, it seems they are factoring in well more than five years of future financial growth in betting stocks.
The U.S. gambling market has been valued differently by different analysts. Some have estimated the size of the U.S. market will reach about $8 billion in 2025. With DraftKings currently valued at around $20 billion, there's obviously a bit of a disconnect there. Because the industry is so new, it's tough to tell what a proper premium is for the industry.
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Source Fool.com
