Shares in DraftKings (DKNG) sank almost 7% in pre-market trading after the U.S. sports betting company announced a public offering to sell its common stock.The stock dropped to $37.80 in early market trading. DraftKings said it has commenced an underwritten public offering of 33 million shares of its Class A common stock, consisting of 14 million shares offered by DraftKings and 19 million shares offered by some of the company’s shareholders.The stockholders intend to grant the underwriters a 30-day option to purchase up to an additional 4.95 million shares of Class A common stock. DraftKings will not receive any proceeds from the sale of Class A common stock offered by the stockholders. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed.DraftKings said it intends to use the net proceeds it receives from the offering for general corporate purposes. Goldman Sachs & Co. and Credit Suisse Securities (USA) are acting as joint book-running managers.The share sale offering comes after the sports gambling went public at the end of April. Since the Nasdaq debut, the stock has more than doubled and is trading at $40.57 as of Tuesday’s close.Five-star analyst Jed Kelly at Oppenheimer last week initiated coverage of the stock with a Buy rating and a $48 price target.“As more states legalize sports gambling, we believe competencies in product development and customer acquisition will allow the company to be a critical player in accelerating the shift in US sports betting from ~$150 billion wagered illegally/ offshore to licensed domestic operators,” Kelly wrote in a note to investors.Although legalized sports betting and iGaming markets are in their very early stages of growth, Kelly estimates for the US legal sports wagering market to grow about 43% annually, reaching about $8 billion by 2025, and $14.4 billion by 2028 as more states regulate sports gaming. The analyst expects DraftKings to achieve about 25% market share.“While a premium valuation and high cash flow burn likely create above-average volatility near term, we emphasize the long-term nature of our rating,” Kelly added.The stock scores 7 Buy ratings versus 1 Hold rating adding up to a Strong Buy analyst consensus. The $43.29 average price target implies 6.7% upside potential in the shares over the coming year. (See DraftKings stock analysis on TipRanks).Related News: iQIYI Pops 35% In Pre-Market On Report Tencent Seeks To Buy Big Stake Nio Completes $428M ADS Offering, Stock Now Up 70% YTD Google Mulling Purchase of Stake in Indian Vodafone Idea More recent articles from Smarter Analyst: * Oracle Sinks Post-Earnings As Cloud Push Drags On * Tesla Clinches Three-Year Pricing Deal With Panasonic For Battery Cells * Google Brings Meet To Mobile In Latest Video-Calling Boost * Novartis Scores FDA Ilaris Approval For Rare Type Of Arthritis

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Shares in Oracle (ORCL) are sinking after the company reported its fiscal fourth quarter earning results. Q4 Non-GAAP EPS of $1.20 beat Street expectations by $0.05, as did GAAP EPS of $0.99 vs the $0.04 consensus. However, revenue of $10.44B missed by $240M, and represented a 6.3% year-over-year decline.Meanwhile cloud services and license support generated revenue of $6.85B, slightly lower than the Street estimated $6.91B. Similarly, cloud license and on-premise license revenue came in at $1.96B falling short of the $2.17B estimate.The board of directors also declared a quarterly cash dividend of $0.24 per share of outstanding common stock.“Our overall business did remarkably well considering the pandemic, but our results would have been even better except for customers in the hardest-hit industries that we serve such as hospitality, retail, and transportation postponing some of their purchases” commented Oracle CEO, Safra Catz.Looking forward, guidance was positive, likely due to pushed-out deals, with F1Q total revenue expected to be (1%)–1% in USD, vs. consensus of (1.8%), and NG EPS of $0.84–0.88 vs. consensus of $0.85.Following the report RBC Capital’s Alex Zukin wrote “Oracle continues its transition to a Cloud-centric world unevenly. Its traditional on-prem license business is shrinking, and Cloud growth is only strong enough to keep total revenue modestly expanding”Citing better margins/ EPS, he raised his price target to $51 from $50 previously, and reiterated his hold rating. Management continues to talk to an acceleration, but the time frame is uncertain, he added. Zukin’s new price target still indicates downside potential of 7% lies ahead.Shares are currently sinking 3% in Wednesday’s pre-market trading, with a 3% gain so far year-to-date. Analysts are split between hold and buy ratings, giving the stock a Moderate Buy consensus. Meanwhile the average analyst price target of $55 is flat with the current share price. (See ORCL stock analysis on TipRanks).Related News: Facebook Unveils Tighter Political Ad Measures Ahead of US Elections Groupon Rises After-Hours Despite Revenue Plunging 35% Y/Y Tesla Clinches Three-Year Pricing Deal With Panasonic For Battery Cells More recent articles from Smarter Analyst: * DraftKings Drops 7% In Pre-Market Amid Public Share Offering * Tesla Clinches Three-Year Pricing Deal With Panasonic For Battery Cells * Google Brings Meet To Mobile In Latest Video-Calling Boost * Novartis Scores FDA Ilaris Approval For Rare Type Of Arthritis

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