Is DraftKings Inventory A Tremendous Bowl Winner?

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In Tremendous Bowl 56, The Los Angeles Rams defeated the Cinncinatti Bengals in an thrilling matchup. By this level, the final move has been thrown and the sport is over. Now, it’s time for the secondary recreation to start. This secondary recreation primarily includes analyzing which Tremendous Bowl advertisements had been probably the most profitable. It additionally means following up on my Tremendous Bowl inventory predictions to see which (if any) play out. Considered one of my predictions, DraftKings inventory, is about to report its This autumn 2021 earnings is that this week.

This was the second 12 months in a row that DraftKings marketed in the course of the Tremendous Bowl. DraftKings inventory can also be up over 130% since going public. So, does this excessive advert spend imply you should purchase DraftKings inventory after the Tremendous Bowl? Let’s break down DraftKings’ latest advert marketing campaign and see the way it may impression its enterprise.

DraftKings stock forecast.

Meet “The Goddess of Fortune”

2021 was the second 12 months in a row that DraftKings shelled tens of millions to air a primetime Tremendous Bowl advert. DraftKings reportedly paid $6.5 million for this 30-second slot. In the event you haven’t seen it, you possibly can take a look at the DraftKings advert right here. This advert had two most important goals. First, it launched a brand new mascot in an try to personify the model. Second, it created an incentive for brand new members to join DraftKings.

On this advert, “The Goddess of Fortune” might be seen taking a wide range of excessive dangers. She jumps out of a DraftKings blimp, rides on Evile Knievel’s bike and bets on Joe Namath. DraftKings has acknowledged that The Goddess of Fortune will make extra appearances transferring ahead.

Customers usually react positively to model personification. In the event you’re not acquainted, model personification is when an organization makes use of some kind of mascot to symbolize its model. Often, the mascot embodies the entire traits of the model. A couple of examples of brand name personification are Flo from Progressive, The Geico Gecko, or the M&Ms. Having a mascot may help separate a model from its competitors. It may possibly additionally assist customers establish extra carefully with the corporate.

The second goal of the advert was an incentive to encourage viewers to signup. This incentive allowed 10,000 fortunate members to wager on the Tremendous Bowl totally free. A handful of those bets had the potential to payout as much as $1 million. In final 12 months’s Tremendous Bowl, the same marketing campaign helped drive a report variety of signups for DraftKings. Solely time will inform if this 12 months’s advert is simply as profitable.

DraftKings Inventory Earnings

DraftKings is about to announce earnings on February 18. Proper now, analysts expect an EPS of -0.65 per share and income of $445.48 million. In Q3 2021, DraftKings reported income of $213 million. This missed analyst expectations by 10%. In addition they reported EPS of -1.35, which missed expectations by 47.56%.

DraftKings Tremendous Bowl Efficiency

Sports activities betting continues to be extremely new in america. In 2018, the Supreme Courtroom eradicated the Skilled and Beginner Sports activities Safety Act. This opened the floodgates for states to legalize sports activities betting in the event that they need to. In simply three years, 21 states have already legalized some type of sports activities betting. This implies we’re nonetheless within the early phases of with the ability to wager on skilled sports activities.

So far as this 12 months’s Tremendous Bowl, Forbes predicts that $7.6 billion was wagered in whole. This cash was doubtless wagered by as many as 31.4 million viewers. DraftKings’ particular numbers should not accessible but. Nonetheless, with a lot cash altering palms, you possibly can wager DraftKings was facilitating loads of bets. So, does this imply that it’s an excellent time to load up on DraftKings inventory?

Ought to You Purchase DraftKings Inventory? Potential Upsides

One of many largest points for DraftKings proper now’s buyer acquisition. Specifically, it spends an exorbitant sum of money to accumulate new customers. It is because the DraftKings service is admittedly not a lot completely different from FanDuel, Caesar’s, or some other on-line sportsbook. It’s slightly bit like calling an Uber or a Lyft. Each Uber and Lyft have related apps. Each offers you a journey from Level A to Level B and there’s not likely a discernible distinction. On account of this, each Uber and Lyft spend tons of cash on advertising and marketing promotions. The same scenario is enjoying out with DraftKings.

The secret proper now for DraftKings is driving new signups. If DraftKings can persuade new members to signup then it has the chance to show them into lifetime clients. Because of the nature of playing, long-term customers could possibly be extraordinarily worthwhile for DraftKings.

With its introduction of The Goddess of Fortune, DraftKings took a step in differentiating itself from rivals. This could possibly be a giant transfer for the corporate in driving signups over the long run. Nonetheless, it’s nonetheless manner too early to inform how The Goddess influences members.

DraftKings has a giant head begin within the cell sports activities betting market. In response to Similarweb, its web site obtained 17.9 million guests in December 2021. That is the biggest of any fantasy sports activities supplier. DraftKings Sportsbook App can also be at the moment #4 within the Sports activities part of the app retailer. It’s ranked 4.8 out of 5 stars.

The largest factor for DraftKings inventory is preventing tooth and nail to stay on prime. It is because there are many rivals nipping at its heels.

Ought to You Purchase DraftKings inventory? Potential Downsides

The 2 largest threats to DraftKings inventory are legalization and competitors. Legalization is transferring ahead at a pleasant tempo since 2018. Nonetheless, there’s all the time a danger that it may stall in key markets. Legalization can also be simply the primary stepping stone. As soon as sports activities betting is made authorized, DraftKings has to struggle different firms for that market. Listed below are just some of DraftKings’ most important rivals:

  • FanDuel
  • BetMGM
  • PointsBet
  • Caesars
  • Fox Wager
  • TwinSpires
  • WynnBET
  • Unibet
  • Bet365
  • BetRivers

As legalization will increase, the market will more than likely solely get extra aggressive. Of those firms, a couple of additionally made their presence recognized on the Tremendous Bowl. Caesar’s confirmed its personal advert that includes JB Smoove as Caesar, Halle Berry as Cleopatra and the Manning Household. Notably, that is one other instance of brand name personification. It additionally builds on the already-established Caesar’s model.

So far as the Tremendous Bowl is anxious, PointsBet is an official associate of NBC Sports activities. This 12 months’s Tremendous Bowl was aired on NBC. This gave PointsBet loads of air time in the course of the large recreation.

The net sports activities betting market is an interesting one. It has the potential to change into large within the coming years however can also be crammed with uncertainty. Control DraftKings inventory as they report earnings this week. This report will more than likely provide perception into the business as a complete (along with DraftKings enterprise).

I hope that you just’ve discovered this text beneficial for studying about DraftKings inventory! As traditional, please base all funding selections by yourself analysis and danger tolerance.


A College of Miami grad, Teddy studied advertising and marketing and finance whereas additionally enjoying 4 years on the soccer group. He’s all the time had a ardour for enterprise and used his expertise from a couple of private initiatives to change into one of many top-rated enterprise writers on Fiverr.com. When he’s not hammering phrases onto paper, yow will discover him hammering notes on the piano or touring to some place random.

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