DraftKings Stock Offering and A New iPhone
DraftKings’ stock price fell yesterday after the company announced a stock offering price at $52 dollars a share. The company opened at over $60 a share so the price represented about an 8% discount. The offering will allow the sellers to profit on DraftKings more than 400% price increase this year.
Many states have recently legalized gambling in some form, which has allowed the company to significantly increase its addressable market. The company has offered numerous promotions in such states to attract gamblers and daily fantasy players to its site rather than to its competitors. Keep a close eye on the company’s user numbers going forward compared to its rivals as the best metric to compare their success in these new markets.
Apple announced it is hosting an online event next to reveal a 5G iPhone. Expectations are very high for the new device because the new technology is expected to bring a significant boost to profits. iPhones currently account for about 50% of Apple’s sales, so the performance of the newest release will be critical for the bottom line.
However, the company has faced manufacturing delays because of the pandemic, so the release of the new model has been delayed. Apple has placed a greater emphasis on services to offset these challenges, but at the end of the day it is the iPhone’s performance that will dictate the future of Apple’s fortunes.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.