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 when it posts results next week. The feat would reflect improved market conditions as well as DraftKings’ DKNG own inroads — the company “is even closing the market-share gap with FanDuel in key states,” he wrote.
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?”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.