With the football season underway, keep an eye on DraftKings (DKNG).
Currently consolidating at $38.44, we’d like to see it retest $42 initially.
For one, according to the American Gaming Association, Americans are expected to spend about $35 billion on NFL games this year. That’s up from the $26.7 billion wagered a year ago.
Two, analysts at Needham recently reiterated a buy rating on DKNG and said it’s in a strong position to benefit in the online sports betting market. Analysts at Macquarie also named KDNG as a top online stock to own during the NFL season “because it is most exposed to near-term upside from favorable NFL game outcomes, higher structural hold and general online sports betting/iGaming growth momentum,” as noted by Seeking Alpha.
Three, in August, the company announced a $1 billion buyback program. And four, in its last earnings report, DKNG boosted its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion from a prior range of $4.8 billion to $5 billion.
“We plan to implement a gaming tax surcharge in high tax states that have multiple mobile sports betting operators on January 1, 2025 which could drive adjusted EBITDA upside on an annual basis,” added CEO Jason Robins.