I love this business model and concept. DraftKings has successfully brought in tons of sports fanatics turned customers. Sports betting is huge at a $150 billion dollar year industry that is becoming legalized step by step and state by state. No more will be the idea you have to go see a sport bookie at your local bar or driving all the way to the casino. This will be huge in the future and I only see them able to corner other markets as they become legal (poker, etc).
Now down to the chart and technicals. We have completed 5 waves, with divergence, and a broken channel trendline. The B wave has been completed rejecting the 0.618 area with a daily pin bar. The target is below $27 at Wave 4 and as deep as the $17 area. From there I'd recommend to buy and hold for years to come.
So you're telling me this stock is just supposed to drop off a cliff by February? People don't just sell for no reason...all current valuations by analysts don't put a price below 39$.
vik_s
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@trevor4312, this is where technical analysis falls off the ledge. Definitely need to bring in fundamentals into the picture.
adriel.arrasmith
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@vik_s, @trevor4312 I can’t say by February, but it’s very possible. Markets go from extreme greed to extreme fear regardless of earnings, etc. Look back at my post on CGC it’s a very similar set up. Markets aren’t always predictable that’s why we have to be patient to find the right opportunities. DKNG is a perfect situation where the stock at this point is just based on emotion when there is no great earnings yet. We will go below $27. And to be specific DKNG is on top of my list for a long term buy once we get better prices.
SIFITIME
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@Adriel.arrasmith, How did this hold up?> How did your analysis on Tesla hold up? Every time you say something will drop it goes up big!
masterpiece5937
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😂
masterpiece5937
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No way
panzerboomer
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Try again
SIFITIME
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Do you ever get a call right?
dougw133pfd
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Sorry. I follow a heavy mix of technicals and fundamentals. States are dying for money and one by one they are legalizing. LCA/GNOG is on the horizon as well and is trading at 23 rifmght now. You're expecting the largest marketshare holder to drop below a newly minted Spac? nope sorry. Really appreciate you're analysis and work. I disagree with the potential for that sever of a drop. Time will tell, good luck
adriel.arrasmith
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@dougw133pfd, I agree with that as well. However, markets are based on human psychology not cold hard facts. It's a huge poker game. If i'm a big investor for example I need take advantage of market cycles to unload my positions and buy back at better prices. What would be the fundamental and logical reason Bitcoin goes to 20k down to 3k then now back near 20k? It's not a company with earnings or much fundamentals, but the price still follows patterns. It's the same as AMZN falling round 65-95% in the dot com bubble and financial crisis among other stocks. It was simply excessive illogical fear.