Research Notes: The Problem With DraftKings Stock

The big YTD rally in DKNG makes some sense — but raises the same long-term questions we've seen before. And it applies to the market as well.

📍 TL;DR

• Since going public, DraftKings stock has been a bellwether for the market as a whole. 2023 looks no different.

• The year-to-date gains, and the rally after Q4 earnings last week, make some sense. This is a better business than headline fundamentals suggest.

• But that rally creates a valuation problem — a problem which echoes similar concerns that ha…