DraftKings Enters The Prediction Markets (Rating Upgrade)
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Caffital Research1.85K FollowersFollow5ShareSavePlay(8min)CommentsSummaryDraftKings Inc. announced its formal entry into the prediction markets with DraftKings Predictions. The launch is a response to increasing prediction market competition.The launch expands DKNG's addressable market massively and brings new markets into the company's offering. DKNG's brand equity should accelerate the platform launch.The prediction markets come with negatives as well. Up-front investments and lower structural margins are clear examples.DKNG stock's recent decline has created an attractive entry point. I estimate 43% upside to $49.2. Olga Whitman/iStock via Getty Images DraftKings Inc. (DKNG) entered the prediction markets. The online gaming giant is expanding its nationwide reach considerably with DraftKings Predictions, leading to added market potential. The launch comes with clear negatives as well, but the move seemsThis article was written byCaffital Research1.85K FollowersFollowI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.