DraftKings Today
(up to 09:08 am)
- 52-week range
- $28.69
▼
$49.57
- Price target
- $51.00
Digital sports betting and iGaming app provider DraftKings Inc. NASDAQ: DKNG Has been in hypergrowth mode till 2024 but continues to lose money and has also issued downside guidance for 2024. The company, along with competitor FanDuel, is owned by Flutter Entertainment Plc NYSE: FLUTFaces more scrutiny on anti-competitive practices. United States Senators Peter Welch and Mike Lee want the US Federal Trade Commission (FTC) to investigate because they claim both Computer and technology field The companies control about 90% of the market share of the online betting market in the United States.
This has led shares to sell off its daily anchored VWAP support level of $39.56 for seven consecutive sessions. Here are five reasons for bullish investors waiting for a pullback to bet on Draft Kings in 2025.
1) DraftKings continues to grow revenue at double-digit rates
Growth still continues at DraftKings, as illustrated by the 39% YoY revenue growth from Q3 to $1.1 billion. The company has grown its monthly unique payers (MUPs) by 55% to 3.6 million. DraftKings is the third largest sports betting platform in the United States. Its third quarter marked The return of NFL football And college football betting season. Efficient acquisition of new customers, healthy customer engagement, expansion into new jurisdictions, high hold percentages, and Jackpocket Inc. Revenue growth was driven by the acquisition of , an app that enables users to purchase lottery tickets on their mobile devices.
Jackpocket users can select their games and numbers, which Jackpocket completes, and scan the ticket with order confirmation. Tickets are securely stored in a fireproof safe. Prizes under $600 are credited to the user’s JackPocket account, while larger wins award the user a ticket. Jackpocket collects a 7% to 10% fee on transactions because the user keeps all winnings. Jackpocket also has live dealer and digital casino games.
2) DraftKings will benefit from the continued legalization of online sports betting
Online sports betting is proving to be an effective way to generate tax revenue for states. As of December 21, 2024, DraftKings is currently legal and Lives in 26 states (technically, 25 states and the District of Columbia) and Ontario, Canada. This represents 49% of the population of the United States and 40% of Canada. It also has individual betting available in 14 states. DraftKings has horse racing betting in 20 states. Missouri was the latest state to legalize sports betting on November 5, 2024, which DraftKings plans to begin in 2025 pending regulatory approval.
High hopes for new states to legalize Sports betting and iGaming. California is the biggest potential market for legalizing online sports betting. However, it faces strong opposition from tribal casinos. A previous attempt at legalization through Proposition 27 failed in 2022. Texas is the second largest potential market, but an attempt was made in 2023, but was rejected. Florida, Georgia, and Minnesota are the next biggest potential markets for the Draft Kings.
3) iGaming legalization is a growth driver
iGaming is the term used by online casinos for online gambling, which can include slots, keno, digital, and live table games such as blackjack, poker, and roulette. DraftKings just works in the five states, Ontario and Canada, with its iGaming platform. While DraftKings does not provide state specifics, iGaming margins are much higher (70% to 90%) than sports betting margins (5% to 10%). This is because casino games always have an edge with the high frequency of playing with digital at home. In contrast, sports betting only offers a “wig,” also known as a hold, that draft kings receive to facilitate betting.
5) DKNG stock is attempting an MSL breakout of a descending triangle pattern
A descending triangle is usually a bearish chart pattern indicator of lower highs on a bounce against flat lower support. A descending upper trendline converges with flat-bottomed horizontal lower trendline support at the top point. A breakdown begins if the stock falls below the lower trendline support. A breakout is triggered if the stock rises above the upper trend line resistance.
A market structure low (MSL) buy signal moves above the high of the high low candle, forming three candlesticks consisting of a low, low low, and high low.
After making a swing high at $45.87, DKNG proceeded to make ten consecutive low candles before a higher low green candle formed above the daily anchored VWAP at $39.56. The high-low candlestick high is $40.62, which also markets the MSL buy trigger. A breakout of the descending triangle could be triggered if DKNG can bounce to $40.62. The daily RSI is slowly rising through the 42-band, potentially gaining momentum. Fibonacci (Fib) pullback support levels are at $88.22, $84.35, $76.99, and $73.06.
Average of DKNG Agreed price target is $51.00This represents an increase of 26.39% And it has the highest analyst price target $62.00. The company has received a buy rating from 23 analysts and a hold rating from three. The stock has a short interest of 2.23%.
Actionable alternative strategies: Bullish investors may consider using Cash-secured put Fib pullback at support levels to buy the dip. If shares are assigned, writing covered calls at fib levels a Wheel strategy For income opportunities while hedging downside with premiums received.
Before you consider DraftKings, you might want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified Five stocks That top analysts are quietly telling their clients to buy now before the broader market hits… and DraftKings wasn’t on the list.
While DraftKings currently has a “moderate buy” rating among analysts, top analysts believe these five stocks are better buys.
Analysts at MarketBeat just released their top five short plays for January 2025. Learn which stocks have the least interest and how to trade them. Click the link below to see which companies made the list.
