Latest news with #DraftKingsInc
Yahoo
2 days ago
- Business
- Yahoo
Up 15% in 3 Months, Is It Too Late to Buy DraftKings Stock?
Shares of gaming platform firm DraftKings Inc. (DKNG) have gained 15% over the past three months, indicating positive market sentiment. Highlights in the company's current market position include the optimism regarding online legal sports betting. Now, a majority of U.S. states have legalized the activity, which creates a long runway for companies like DraftKings. The company is also showing operating efficiency through growing financials. So, should investors take a bet on DraftKings now? More News from Barchart Warren Buffett Warns Investing At 'Too-High Purchase Price' Even for 'an Excellent Company' Can Undo a Decade of Smart Investing Why Archer Aviation's (ACHR) Post-Earnings Tailspin Looks Like a Favorably Mispriced Opportunity BitMine Immersion Now Holds 1.15 Million Ethereum Tokens. Should You Buy BMNR Stock Here? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. About DraftKings Stock Founded in 2012 and headquartered in Boston, Massachusetts, DraftKings is a popular digital sports and gaming platform company that offers its customers a suite of real-money experiences. The company provides daily fantasy sports (DFS), mobile and retail sports betting, and online casino gaming. The company also designs, develops, and powers sportsbooks and iGaming services across the U.S. and international markets. The company's platform enables users to draft fantasy teams, bet on live sports events, and play casino games, including blackjack, roulette, and slots. DraftKings currently has a market capitalization of $38.3 billion. DKNG stock has been performing well recently, particularly after its solid second-quarter earnings. Over the past 52 weeks, the stock has gained 37.5%. It reached a 52-week high of $53.61 in February. This year, it is up by 16.21%. Just for comparison, the broader S&P 500 Index ($SPX) has gained 9.62% over the same period. However, the company's valuation is currently at an eye-watering level. Its forward price-to-earnings ratio sits at 100.56 times, which is significantly higher than the industry average of 18.54 times. DraftKings Recorded Robust Financial Growth in Q2 On Aug. 6, DraftKings reported solid second-quarter results for fiscal 2025. In that, the company's operations were fueled by strong customer retention. Its monthly unique payers (MUPs) increased by 6% year-over-year (YOY) to 3.30 million, while average revenue per MUP increased by a robust 29% to $151. DraftKings' operational gains indicate strong unique payer retention and a slew of acquisitions across the company's Sportsbook and iGaming segments, as well as its purchase of digital lottery app Jackpocket. DraftKings has successfully implemented its strategy to increase its customer base by optimizing marketing costs. Revenue increased by 37% from the prior year's period to $1.51 billion. This figure exceeded the $1.43 billion that Wall Street analysts had expected. Besides substantial customer acquisition and engagement, revenue growth was also harnessed by a higher structural sportsbook hold percentage. The company reported $0.30 in GAAP EPS, up 200% YOY, and adjusted EPS of $0.38, up 73% from its year-ago value. However, its bottom-line figure was lower than the $0.41 that analysts were expecting. DraftKings also pointed towards further robust growth for this year. It is reportedly in talks to acquire the regulated prediction market platform Railbird, which enables users to trade contracts on real-world events, including economic indicators, weather patterns, and sports outcomes. There is also a helpful provision for the company in President Trump's 'One Big Beautiful Bill' that changes tax laws to allow gamblers to deduct only 90% of their losses (as opposed to the previous 100%). This primarily affects professional gamblers, who essentially cut into DraftKings' profits. DraftKings maintained its fiscal 2025 revenue guidance range of $6.20 billion to $6.40 billion, which indicates a 32% YOY growth. The company expects to deliver revenue closer to the high end of this range, driven by its sportsbook-friendly outcomes, as well as other revenue drivers. Wall Street analysts are highly optimistic about DraftKings' future earnings. They expect the company's loss per share to narrow by 78.3% YOY to $0.13 for the third quarter. For the current fiscal year, EPS is projected to surge 158.1% annually to $0.61, followed by a 136.1% growth to $1.44 in the next fiscal year. What Do Analysts Think About DraftKings Stock? Wall Street analysts are soundly bullish on DKNG stock. Recently, analysts at Jefferies raised the price target from $53 to $54, while maintaining their 'Buy' rating on the stock. The company's strong Q2 results were cited as a reason. The analyst firm also pointed out the upcoming football season as a possible tailwind. The company is also facing easier comparisons due to its previous low-holds. Barclays analyst Brandt Montour raised the price target on DraftKings from $51 to $54, while keeping the 'Overweight' rating on the company's shares, which indicates a generally positive outlook on the stock. In addition, Benchmark analyst Mike Hickey maintained his 'Buy' rating on the company's shares, while raising the price target on the stock from $50 to $53, reflecting a positive sentiment on the stock's prospects. DraftKings has come under the spotlight on Wall Street, with analysts awarding it a consensus 'Strong Buy' rating overall. Of the 30 analysts rating the stock, a majority of 25 analysts have rated it a 'Strong Buy,' three analysts suggest a 'Moderate Buy,' while two analysts are playing it safe with a 'Hold' rating. The consensus price target of $54.77 represents a 27.7% upside from current levels. The Street-high price target of $64 indicates a 49.3% upside. Key Takeaways With the possibility of increasing legalization, continued customer acquisition, and efficiency gains, DraftKings' prospects appear bright. Moreover, despite the high valuation, analysts expect its stock price to rise. Therefore, DKNG stock may be a sound investment at this time. On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
26-06-2025
- Business
- Yahoo
DraftKings Implements 50-Cent Transaction Fee on Illinois Bets Due to New State Tax
DraftKings Inc. (NASDAQ:DKNG) is one of the most active stocks to buy according to analysts. Earlier on June 12, DraftKings announced that it will introduce a 50-cent transaction fee on all mobile and online bets placed through DraftKings Sportsbook in Illinois. This new fee will take effect on September 1 this year. The decision comes in direct response to recent and prior increases in sports wagering taxes passed by the Illinois state legislature, which apply to all mobile and online sports wagers placed with licensed operators. This move by DraftKings follows a similar announcement by FanDuel earlier this month, which plans to implement an identical 50-cent charge starting July 1, after the introduction of the Illinois Transaction Fee under House Bill 1928. A woman at a betting table paying out customers who won their sports bets. The new per-bet tax, effective July 1, will impose a 25-cent fee per wager for the first 20 million wagers taken by licensed sportsbooks, increasing to 50 cents per wager thereafter. This is expected to generate ~ $36 million in additional revenue for the state. DraftKings maintains that it supports collaborative policymaking that ensures the long-term sustainability of the industry and contributes to state revenue. DraftKings Inc. (NASDAQ:DKNG) is an international digital sports entertainment and gaming company. It provides online sports betting, daily fantasy sports, media, digital lottery courier, media, and other products, as well as retail sportsbooks. While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
25-06-2025
- Business
- Yahoo
DraftKings Expands Responsible Gaming, Renews State Council Funding
DraftKings Inc. (NASDAQ:DKNG) is among the 10 Best Casino Stocks To Buy Now. During Problem Gambling Awareness Month, DraftKings Inc. (NASDAQ:DKNG) announced the extension of its responsible gaming programs and the continuation of its State Council Funding Program. A woman at a betting table paying out customers who won their sports bets. Since its inception in 2022, the program has disbursed over $2 million, and in 2025, it will distribute over $500,000 to 34 state councils in the United States. The firm also celebrated the 13 million unique visits to My Stat Sheet, a service that almost half of all DraftKings Inc. (NASDAQ:DKNG) players use. Furthermore, DraftKings Inc. (NASDAQ:DKNG) is promoting responsible gaming in advance of the NCAA basketball tournaments with a $10 million global advertising campaign that was created with branding assistance from the NFL and NBA. It is one of the best casino stocks. DraftKings Inc. (NASDAQ:DKNG)' push for legitimate gaming is centered on education and openness. Local projects like outreach improvements in Maryland and North Carolina, treatment facility modifications in Louisiana, and hotline technology updates in California are funded by its State Council Funding Program. My Stat Sheet provides individualized gaming information, such as net results, wagers, and time spent. This program encourages player self-awareness by mimicking devices such as fitness monitors. The company's $10 million advertising campaign, which makes use of well-known collaborations and important athletic events, highlights its larger commitment to ethical play. While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None. Sign in to access your portfolio
Yahoo
18-06-2025
- Business
- Yahoo
DraftKings (DKNG) Imposes Fee to Offset Illinois' New Tax, Jefferies Maintains a Buy
DraftKings Inc. (NASDAQ:DKNG) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Jefferies analyst David Katz released a note discussing the impact of the Illinois legislature's approval of a new betting transaction tax on all in-state wagers announced in the first week of June. As a result of the higher tax, operators are expected to adjust their fees accordingly. The new transaction tax, effective from July 1, requires operators to be charged $0.25 for each bet up to 20 million bets and $0.50 for each additional bet thereafter. On June 10, Flutter Entertainment plc (NYSE:FLTR), another player in the space, announced a $0.50 fee for each bet made on its FanDuel platform, effective September 1, to offset the added cost. According to Jefferies analyst David Katz, this move is likely to set a precedent across the industry. Following the development, Katz believed that DraftKings is likely to adopt a similar surcharge model, given its practicality in directly addressing the tax burden. While such a fee could be passed through to consumers, the analyst views the development as moderately positive for the stock. He maintained a Buy rating on DraftKings, with a $60 price target, reflecting continued confidence in the company's ability to navigate evolving regulatory frameworks. Notably, two days after the analyst's note, on June 12, DraftKings also announced that it would implement a $0.50 transaction fee on all mobile and online bets placed in Illinois, effective September 1. While the company CEO, Jason Robins, shared his disappointment over the tripling of the company's tax rate in the state over the past two years, he offered to remove the fee immediately if the new legislation is repealed. DraftKings Inc. is a Boston, Massachusetts-based gambling company that offers sportsbook and daily fantasy sports (DFS) services. While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
DraftKings (DKNG) Imposes Fee to Offset Illinois' New Tax, Jefferies Maintains a Buy
DraftKings Inc. (NASDAQ:DKNG) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Jefferies analyst David Katz released a note discussing the impact of the Illinois legislature's approval of a new betting transaction tax on all in-state wagers announced in the first week of June. As a result of the higher tax, operators are expected to adjust their fees accordingly. The new transaction tax, effective from July 1, requires operators to be charged $0.25 for each bet up to 20 million bets and $0.50 for each additional bet thereafter. On June 10, Flutter Entertainment plc (NYSE:FLTR), another player in the space, announced a $0.50 fee for each bet made on its FanDuel platform, effective September 1, to offset the added cost. According to Jefferies analyst David Katz, this move is likely to set a precedent across the industry. Following the development, Katz believed that DraftKings is likely to adopt a similar surcharge model, given its practicality in directly addressing the tax burden. While such a fee could be passed through to consumers, the analyst views the development as moderately positive for the stock. He maintained a Buy rating on DraftKings, with a $60 price target, reflecting continued confidence in the company's ability to navigate evolving regulatory frameworks. Notably, two days after the analyst's note, on June 12, DraftKings also announced that it would implement a $0.50 transaction fee on all mobile and online bets placed in Illinois, effective September 1. While the company CEO, Jason Robins, shared his disappointment over the tripling of the company's tax rate in the state over the past two years, he offered to remove the fee immediately if the new legislation is repealed. DraftKings Inc. is a Boston, Massachusetts-based gambling company that offers sportsbook and daily fantasy sports (DFS) services. While we acknowledge the potential of DKNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
