How to Buy DraftKings, Inc. (DKNG) Stock

If you’re familiar with the world of fantasy sports or sports betting, you’re likely already familiar with betting hub DraftKings (NASDAQ: DKNG). DraftKings allows users to participate in daily fantasy sports challenges with prizes awarded to users who show the best performances. DraftKings’ stock prices have seen a steady increase in value since the onset of the COVID-19 pandemic, outpacing the S&P 500 in January 2021 with an increase in value of 16%.

Adding a few shares of DraftKings stock to your portfolio can be an excellent way to invest in the world of online fantasy sports and virtual betting. If you’re interested in learning more about the history of DraftKings, how to invest in its stock or the potential upsides and downsides of making an investment in this company, our guide will help you trade confidently.

How to Buy DKNG Stock Summary:

• Step 1: Pick a brokerage.
• Step 2: Decide how many shares you want to buy.
• Step 3: Choose your order type.
• Step 4: Execute your trade.

How to Buy DraftKings Stock

If you’re familiar with the process of how to buy stocks, you can likely already use your existing brokerage account to begin trading. DraftKings’ stock trades on the Nasdaq market, which means that every U.S.-based broker will easily allow you to buy and sell shares of DKNG. If you’ve never invested in the stock market before, here are the steps that you’ll need to take to get started.

Step 1: Pick a Brokerage

The first step to buy or sell DraftKings’ stock is to open an account with a broker. A broker is a financial service provider that executes buy and sell orders on behalf of retail investors. There are a wide range of brokers offering services throughout the country — some of the factors you might want to consider before you open an account may include:

Commissions and Account Fees

Though many brokers have switched to a $0-fee commissions structure, there are still a few brokers that charge a small commission each time you place a buy or sell order. These fees can add up quickly, especially if you’re a frequent trader. If you plan on investing daily or weekly, be sure that you account for each brokers’ fee schedule before you open your account.

Minimum Account Balances

Some brokers have $0 minimum account balances, while others may require you to hold up to $1,000 in your account to avoid fees. If you only have a few dollars to invest, be sure to search for a broker that offers $0 account minimums.

Access to Additional Markets

If you only want to buy and sell DraftKings’ stock, access to additional markets might not be high on your list of priorities. However, if you’re interested in investing in other types of assets beyond U.S.-based stocks (for example, forex currencies, cryptocurrencies or options) you may need to search for an individual broker that offers extended market access. Be sure to review each broker’s list of supported markets before you decide where to open an account.

Step 2: Decide How Many Shares You Want

After you’ve opened your brokerage account and added a funding source, you can use your broker’s trading platform to start buying and selling stocks. One of the first decisions that you’ll need to make when you decide to place a buy order is the number of shares that you want to add to your portfolio.

First, set a budget that’s in line with your risk tolerance and belief in DraftKings as a company. You may want to do a bit of independent price research and compare expert investor sentiments before you decide how many shares of stock you want to buy. 

After you’ve set a budget, take a look at the current market price of DKNG stock and calculate how many shares you can buy with your budget. Don’t worry if this doesn’t round out to an even number of shares — most brokers will allow you to buy and sell “fractional shares” based on the exact amount of money you want to invest.

Step 3: Choose Your Order Type

When you’ve decided how many shares of stock you want to buy, your next task is to choose a type of order. There are multiple types of buy orders, and the buy order that you choose will determine when your order is placed. Most brokers offer retail investors a wide range of buy order options, but here are a few of the most common order types investors use.

Market Buy

A market buy is executed as soon as possible at the current market rate. For example, if shares of DKNG are trading at a market price of $55, placing a market order means you’ll pay around $55 per share when your order is executed.

Limit Buy

A limit buy is executed at or below a specific price. For example, if shares of DKNG are trading at an average price of $55 per share, you might set a limit buy to purchase 10 shares with a limit price of $54. If the price of the stock falls to $54, your broker will execute your order — if not, your order will remain open. Limit buys give you more control over the price that you pay per share of stock but are less likely to be filled when compared to market orders.

Trailing Stop Order

A trailing stop order is an order that’s triggered when the price of a stock rises above its lowest price by a specific percentage or dollar amount. Trailing stop orders are executed at the current market rate when conditions are met.

Step 4: Execute Your Trade

Once you finalize the details of your order, submit it through your broker’s trading platform. From here, you can sit back and relax — your broker will work to fill the order according to the specifications of your buy order.

DraftKings, Inc. Stock and History

DraftKings, Inc. is a leader in digital sports entertainment and gaming. It trades on NASDAQ with the ticker DKNG. The company has changed digital sports betting. They provide platforms for fantasy sports and sports wagering. Recently, DraftKings' stock has seen fluctuations due to market sentiment and regulatory changes. A significant development is their deal with Simplebet. This partnership aims to enhance in-play betting features. It could increase user engagement and revenue. However, ongoing legal investigations may create uncertainty. These legal issues could harm investor confidence and affect stock value. DraftKings needs to manage opportunities from partnerships while addressing legal risks. Investors are closely watching these developments for insights into DKNG's future in digital sports betting.

All About DraftKings, Inc.

DraftKings, Inc. is a top digital sports and gaming company. It is known for its online sports betting, daily fantasy sports, and casino gaming. The company is based in Boston, Massachusetts. DraftKings offers various products for sports fans and gamers. Its online sports betting platform allows users to bet on many sporting events. Users can also create custom teams in daily fantasy sports and compete for cash prizes. The casino section targets players looking for exciting gaming options. DraftKings develops innovative betting software for online and retail platforms, enhancing user experiences. The company is also involved in digital collectibles, broadening its offerings. With a focus on responsible gaming and customer interaction, DraftKings is shaping the future of digital entertainment in sports and gaming.

DraftKings Stock History

DraftKings has experienced a varied stock history characterized by significant events and growth goals. The company is currently facing legal scrutiny, with investigations into possible violations of securities laws impacting its stock performance. In response to these challenges, DraftKings is working to improve its in-play betting features through a partnership with Simplebet, with the intention of increasing its presence in the growing sports betting market.

The company's financial performance has been notable. Its Q2 2024 earnings report showed an earnings per share (EPS) of $0.22, which exceeded analysts' expectations. This outcome highlights DraftKings' ability to adapt and thrive despite competitive pressures. Investors will closely monitor the upcoming earnings release date. This report could influence perceptions of the stock and its long-term potential. With a focus on innovation and a strong earnings trajectory, DraftKings continues to be an important player within the gaming industry.

What's Next for DKNG?

DraftKings has a market cap of $16.45 billion and a stock price of $33.89. The company is at a crucial point. Analysts hold a cautiously optimistic view on its future. Several factors could significantly influence DraftKings' direction. Upcoming regulatory updates in states looking to legalize sports betting may open new market opportunities. This could boost DraftKings' revenue. Partnerships with major sports leagues or teams could also increase brand visibility and attract more users. Additionally, the trend of mobile sports betting offers another chance for growth as consumer behavior shifts to digital platforms. As competition rises, DraftKings must innovate to maintain its market share.

Additionally, potential collaborations with tech firms for enhanced data analytics or user experience could set the stage for future growth. Keeping an eye on these factors will be essential for stakeholders viewing the evolving landscape around DraftKings.

Future developments, regulatory factors, and strategic partnerships are important aspects that may impact DraftKings' performance and stock price moving forward.

Why Should You Buy DKNG Stock?

The sports betting and online gaming market are growing quickly. Investors are interested in companies that can benefit from this trend. DraftKings Inc. (DKNG) stands out as a strong investment choice. It has innovative technology and a well-known brand. Its strategic partnerships also help it succeed as legal sports betting expands in the U.S. The company focuses on user experience and uses data to attract and keep customers. When considering DKNG stock, it’s important to look at the key reasons to invest and how it fits into the gaming industry's overall growth.

Strong Market Position in a Rapidly Growing Industry

DraftKings is a leader in the sports betting and online gaming industry. This industry is growing rapidly. Sports betting is becoming legalized in more states across the United States. DraftKings is well-positioned to benefit from this trend as more states allow online sports betting. This growth is expected to continue. DraftKings' early entry into the market and strong brand recognition provide a competitive advantage. This allows the company to capture and retain a significant market share as the industry expands.

Diverse and Expanding Revenue Streams

DraftKings has diversified its business model beyond sports betting. This helps reduce risks from relying on a single source of revenue. Besides its core sports betting platform, DraftKings offers daily fantasy sports, which is still popular. The company has also entered the online casino market, providing games such as slots, blackjack, and roulette. Additionally, DraftKings is exploring media partnerships and content creation to strengthen its brand and generate more revenue. This strategy improves revenue stability and opens up new growth opportunities in the online gaming and entertainment market.

Innovative Technology and Superior User Experience

DraftKings emphasizes technology and innovation. The company continually improves its platform to create an engaging user experience. It invests in advanced analytics and personalized recommendations. User-friendly interfaces also help set it apart from competitors. DraftKings focuses on mobile and digital experiences. This is important as more consumers prefer accessing betting and gaming services via smartphones and devices. By enhancing its platform and adding new features, DraftKings attracts new customers. It also maintains high user engagement and loyalty, which are essential for growth in a competitive industry.

Considerations Before Buying DKNG Stock

Investing in stocks can be rewarding, but it requires careful thought. This is especially true for companies like DraftKings Inc. (DKNG). DKNG is a leading online sports betting and gaming platform. It offers significant growth potential in the growing entertainment and gambling sectors. Before buying DKNG stock, it’s important to consider several factors. Look at the regulatory environment, market competition, and financial health. Evaluating risks is also key. This guide will highlight important points to help you make informed decisions about investing in DKNG stock. A balanced approach can help you navigate potential gains and risks in stock trading.

Regulatory Risks and Market Saturation

The sports betting and online gaming industry has a complex regulatory framework. The legalization of sports betting in the U.S. has helped DraftKings grow. However, regulations are a significant risk. Each state has different rules. Changes, such as higher taxes or licensing fees, could hurt DraftKings' profits. Some states might also reverse sports betting laws, limiting market expansion. As more states legalize sports betting, competition will increase. New companies, including big established ones, will enter the market. This will lead to more competition and pressure on profit margins. Companies will likely spend more on marketing to attract customers. Investors should think about how market saturation could affect DraftKings' growth and market share.

Profitability Concerns

DraftKings has seen impressive revenue growth but has not yet achieved consistent profits. The company is spending heavily on acquiring customers through marketing, promotions, and partnerships. It is also investing to improve its technology. These efforts are important for gaining market share but result in high operating costs and ongoing losses.Investors need to assess whether DraftKings can manage costs and improve efficiency. The path to profitability looks tough, especially if customer acquisition costs stay high or competition increases. Investors should think about DraftKings' ability to create a sustainable business model long-term as it shifts from growth to profitability. Balancing growth with cost control will be crucial for the company’s success and for delivering value to shareholders.

Market Volatility and Economic Conditions

The sports betting and iGaming markets are volatile. They are affected by many factors. Seasonal sports events, consumer sentiment, and the economy all play a role. For example, DraftKings' success relies on big sporting events like the NFL season, the Super Bowl, and March Madness. Disruptions to these events can directly impact their revenue. Economic downturns also pose risks to DraftKings. Since sports betting and gaming are discretionary activities, they are sensitive to economic changes. During tough times, people may cut back on entertainment spending, leading to lower revenue for DraftKings. Additionally, changes in the stock market can cause fluctuations in DraftKings' stock price. Investors should be ready for volatility and consider the overall economy when evaluating this stock.

Should You Invest in DKNG Stock?

DraftKings Inc. (DKNG) offers an interesting investment opportunity, particularly after its recent increase of revenue guidance, which reflects confidence about its growth. As a key contributor to the digital sports entertainment and gaming industry, DKNG is well-placed to benefit from the growing market for online sports betting and iGaming.

The company’s business model focuses on offering a platform for sports fans that combines sports betting and fantasy sports. With more states legalizing sports gambling, DKNG is likely to see increased user engagement and transaction volume.

The growth of iGaming provides new revenue opportunities, improving DKNG’s outlook amidst a competitive environment. With new revenue guidance, a solid business model, and an expanding market presence, DKNG is well-positioned for investors looking to enter the expanding digital sports entertainment sector.

If you're interested in a fast-changing sector, DKNG could be a good option to include in a diversified portfolio.

Frequently Asked Questions