DraftKings (NASDAQ:DKNG) delivered a remarkable topline performance in the fourth quarter of Fiscal Year 2022 as sales increased 80.8% year-over-year. Surprisingly, the users of TipRanks’ Website Traffic Tool were less amazed by these numbers.
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Wondering how to get this predictive superpower? Well, our tool provides data about the performance of a company’s website domain, which can be used to predict the upcoming earnings report. Growth in online usage may point to higher sales, while a decline in traffic trends can suggest weak demand and hint at downbeat results.
Ahead of the Q4 earnings release, the tool showed that website traffic for draftkings.com witnessed a 20.3% surge in unique visits when compared to the year-ago quarter. The online sports betting company’s efforts to launch its Sportsbook and iGaming products in additional states seem to have been successful.
What Analysts Are Saying about DKNG?
Following the results, JMP Securities analyst Jordan Bender reiterated a Buy rating on DraftKings with a price target of $23. The analyst is of the opinion that the company’s financial performance in 2023 should continue to improve.
Overall, analysts are cautiously optimistic about DraftKings. DKNG stock has a Moderate Buy consensus rating based on seven Buy, four Hold, and two Sell recommendations. The average stock price target of $18.33 implies 2.9% upside potential from the current level. Shares of the company are up 19.5% in the past three months.
Ending Thoughts
The company is optimistic about revenue growth prospects in the near term. This is based on expectations that more U.S. states will legalize sports betting and roll out their products in several more jurisdictions.
Importantly, uncertain economic times make it difficult to analyze consumer behavioral patterns. Thus, vigilance on website trends indicated by TipRanks’ Website Traffic Tool could guide investors in making a prudent investment decision.
Learn how Website Traffic can help you research your favorite stocks.
