DraftKings is powering toward a big milestone — but a budding threat looms – MarketWatch
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” : ‘s.dev.’; const productHostName = `www.${productHostNamePrefix}${PRODUCT_DOMAIN[product]}`; return [productHostName, LOGIN_URL[product], `${(SHOP_URL[envGoogleEA] || SHOP_URL.dev)[product]}`]; }, _registerUser(credential) { const PRODUCT_DOMAIN = { WSJ: ‘wsj’, BOL: ‘barrons’, FN: ‘fnlondon’, MW: ‘marketwatch’, MG: ‘mansionglobal’ }; const EDITION_ID = { WSJ: ‘WSJ-EN_US’, BOL: ‘BARRONS-EN_US’, FN: ‘EFN-EN_US’, MW: ‘MARKETWATCH-EN_US’, MG: ‘MG-EN_US’ }; const REGISTRATION_SOURCE = { WSJ: ‘WSJ’, BOL: ‘BARRONS’, FN: ‘EFN’, MW: ‘MARKETWATCH’, MG: ‘MG’ }; const LOGIN_URL = { WSJ: ‘accounts.wsj.com/auth’, BOL: ‘accounts.barrons.com/auth’, FN: ‘accounts.dowjones.com/auth/fn’, MW: ‘accounts.marketwatch.com/auth’ }; const pageSiteProduct = window.utag_data.page_site_product; const registerUrlPrefix = envGoogleEA === ‘prod’ ? ” : ‘s.dev.’; const registerBasedUrl = `https://register.${registerUrlPrefix}${PRODUCT_DOMAIN[pageSiteProduct]}.com`; const registerEndpoint = `${registerBasedUrl}/api/createSocialConnectUser`; const loginUrlPrefix = envGoogleEA === ‘prod’ ? ” : ‘int.’; const loginBaseUrl = LOGIN_URL[pageSiteProduct]; const loginUrl = `https://${loginUrlPrefix}${loginBaseUrl}/google-login`; const targetUrl = new URL(window.location.href); targetUrl.searchParams.set(‘isGaa’, true); fetch(registerEndpoint, { method: ‘POST’, body: JSON.stringify({ id_token: credential?.credential, displayContextId: ‘SOCIAL_CONNECT’, returnUrl: window.location.href.split(‘?’)[0], editionId: `${EDITION_ID[pageSiteProduct]}`, registrationSource: `${REGISTRATION_SOURCE[pageSiteProduct]}` }), headers: { ‘content-type’: ‘application/json’, } }) .then((response) => { if (!response.ok) { console.error(‘GoogleEA: Social Connect Invalid Status Code’); return; } return response.json(); }) .then((userState) => { if (!userState) { console.error(‘GoogleEA: Social Connect No Data’); return; } window.location.href = `${loginUrl}?target=${encodeURIComponent(targetUrl)}`; }) .catch((err) => { console.error(`GoogleEA: Social Connect Err: ${err}`); }); } }; })() ]]]]]]]]>]]]]]]>]]]]>]]>
The Ratings Game
Last Updated: July 31, 2023 at 8:20 a.m. ET First Published: July 28, 2023 at 4:34 p.m. ET
It remains to be seen what Fanatics will do with PointsBet U.S., but at the very least DraftKings will be facing a better-capitalized rival, analyst notes
DraftKings shares have rocketed 180% so far this year.
Getty Images for DraftKings
[]DraftKings Inc. is making big strides in its business, so much so that SVB MoffettNathanson now expects the company to hit a big milestone.
[]Analyst Robert Fishman predicts the online-gambling company will post its first quarter of profitability on the base of adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) when it posts results next week. The feat would reflect improved market conditions as well as DraftKings’ DKNG, -1.85% own inroads — the company “is even closing the market-share gap with FanDuel in key states,” he wrote.
[]The FactSet consensus also calls for positive adjusted Ebitda, with analysts modeling $16 million on the metric on average.
[]Fishman, however, also flagged a potential budding threat on the horizon. Fanatics outbid DraftKings for PointsBet U.S. and will look to close the deal in the months to come. He titled his note to clients: “Is It Time To Worry About Fanatics Yet?”
[]See also: DraftKings’ stock has been on a tear, but one analyst cautions the rally has gone too far
[]On one hand, PointsBet U.S. is a money-bleeding entity with just 3% or so of the market, Fishman notes, but it could prove beneficial as Fanatics, known for selling sportswear and collectables, seeks to expand its empire.
[]“While Fanatics may still be in beta mode in its four launched states of Ohio, Massachusetts, Maryland, and Tennessee, its planned acquisition of PointsBet will provide a jumpstart in the states in which it is active,” Fishman said in his latest report.
[]The company also brings various advantages to the table, such as its relationships with leagues and athletes. “How aggressively the company plans to use these assets and the appetite for sports fans to be open to another [online sports-betting] app remains to be seen,” Fishman said, but at the very least, incumbent leaders DraftKings and FanDuel will be up against a rival with stronger financial backing than before.
[]Investors seem upbeat about DraftKings’ position in the world of online sports betting, sending shares up more than 180% so far this year, when factoring in a 3% rally in Friday trading. Fishman, however, is more measured, with a market-perform rating on the stock and a $25 target price that stands below its roughly $30 intraday level Friday.
[]Read: Why DraftKings CEO Jason Robins isn’t celebrating the company’s big year
[]Wall Street will find out more about the company’s positioning Thursday afternoon when DraftKings posts second-quarter results.
[]Women’s World Cup 2023: What time does the USWNT play? How much do the players make?
Elon Musk’s X blocks San Francisco building inspectors from giant rooftop sign
[] Elon Musk’s X has blocked San Francisco building inspectors from accessing its headquarters building to inspect a giant, makeshift “X” installed on the roof last week.
[]Emily Bary is a MarketWatch reporter based in New York.
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