What happened
DraftKings (NASDAQ:DKNG) shareholders outperformed a declining market last month. Shares gained 16% in January compared to a 1% downtick in the S&P 500, according to data provided by S&P Global Market Intelligence.
That boost followed a bigger rally in 2020, with the sports betting stock jumping over 300% last year.
IMAGE SOURCE: GETTY IMAGES.
So what
Investor enthusiasm grew last month for two main reasons. First, DraftKings announced progress in securing new markets, including its launch in Michigan and Virginia that brought the platform's total availability to 12 U.S. states. Betting access also grew with a new partnership with the Drone Racing League, which added to the wide range of sports and gaming contests that DraftKings users can access.
Now what
The company will announce its latest earnings results on Feb. 26, and expectations are running high for that report. Investors are looking for sales and app usage to spike, as they did last quarter, thanks to the continued movement of sports betting into the mainstream.
DraftKings should announce net losses for the period, but that likely won't worry Wall Street as long as management can show progress in building out its growth platform later this month.
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