News

DraftKings Stock Soars as Analyst Upgrades Outlook

2 Mins read

DraftKings stock continued its upward trajectory on Wednesday after Bank of America Securities analyst Shaun Kelley upgraded shares of the online sports betting app. Kelley’s confidence in DraftKings’ near term performance led him to raise his price target on the stock to $35, up from $25. This positive outlook is driven by the increasing legalization of online sports betting in various states and the company’s ability to improve costs.

Investors eagerly await DraftKings’ second-quarter earnings report, scheduled for August 4. They will closely monitor customer acquisition costs and the company’s progress in expanding into new states, as these factors are critical to its path towards profitability.

During the first quarter, DraftKings reported a notable increase of 57% in new users compared to the previous year. Furthermore, customer acquisition costs have declined by 27%. In their letter to shareholders, DraftKings expressed their optimism, stating that they are “on the cusp of achieving profitability on an adjusted Ebitda basis.” It is anticipated that the company will reach breakeven on an adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) basis in the second quarter.

Overall, DraftKings’ stock surge demonstrates growing confidence among investors and industry experts regarding the future profitability of the company. With the continuous expansion of online sports betting and ongoing efforts to improve operational efficiency, DraftKings remains a strong player in the market.

Estimating Positive Revisions for DKNG: A Dominant Platform in the Growing Online Gaming Industry

The online gaming industry is experiencing significant growth, driving the need for estimate revisions both in the current and forthcoming quarters and years. As DKNG establishes itself as a dominant platform with a strong technological moat, there is ample room for positive changes. These insights were shared in a research note by Kelley, a respected analyst.

Impressively, DKNG’s stock has already surged by 166% in 2023, indicating its promising trajectory. Further reinforcing this positive trend, shares of this online sports betting company continued to climb, with a 7% increase reaching $30.99. If this momentum persists, DKNG is set to achieve its highest close since December 2021, showcasing an impressive 52-week closing high, as reported by Dow Jones Market Data.

Kelley is not the only one optimistic about DKNG’s future performance. Another analyst, Mike Hickey from Benchmark, has also raised his price target for the stock from $26 to $32 while maintaining a Buy rating. Hickey believes that DKNG will surpass the market consensus in terms of both revenue and profitability in the second quarter. Additionally, he highlights DKNG’s substantial market share gains in new state launches, particularly alongside FanDuel, with an average combined market share of 77% on handle. Notably, DKNG has also made significant advances in more mature states.

The positive estimations shared by Kelley and Hickey highlight DKNG’s strong positioning in the online gaming industry and its ability to seize market opportunities. As the company continues to assert its dominance and leverage its technological advancements, it is poised for further success in the quarters ahead.

Related posts
News

LSEG Rides Market Volatility To Solid H1 Growth, Fueled By Tradeweb, FX - FinanceFeeds

1 Mins read
The London Stock Exchange Group (LSEG) posted a stronger-than-expected first half, brushing off market volatility with double-digit growth in its core trading…
News

Coinbase Unveils 'Everything Exchange' Bringing Tokenized Stocks to US Users

1 Mins read
Coinbase said it will begin offering tokenized stocks, derivatives, prediction markets and early-stage token sales to U Coinbase said it will begin…
News

High Risk 100 USD SAR Expert Advisor Settings

1 Mins read
DISCLAIMER: Forex trading has a risk of losing all your money. Martingale and hedging systems that we have used now are kind…

Leave a Reply

Your email address will not be published. Required fields are marked *