Shares of DraftKings soared to a 52-week high Monday (July 10).
The Boston-based firm’s projected profitability on an adjusted EBITDA basis took the stock up 7.96% to a $28.79 per share, Seeking Alpha reported Monday.
Analysts have taken notice of the sports betting stock’s performance, according to the report. For example, Oppenheimer has bumped up its price target, and BTIG Research said, per the report, “DraftKings is expected to benefit from favorable fundamentals in 2023, including product improvements, an increasing parlay mix, a positive operating backdrop, and improved efficiency, which could drive significant upside in estimates and positive revisions.”
Morgan Stanley also has had its say, recently reiterating an Overweight rating on DraftKings as it pushed up its 2023-25 digital estimates to reflect consolidation of market share, a shorter path to profitability, and a faster ramp of new states, according to the report.
Online sportsbooks are becoming more competitive as more states legalize these platforms and parlay bets increase in popularity, PYMNTS reported June 16.
PYMNTS research shows that 21% of consumers prefer to receive instant payments on gaming payouts.
Instant payments has become the most popular option in how consumers choose to accept their winnings, according to “Casinos, Gambling and Gaming Platforms Bet On Instant Payments,” a PYMNTS and Ingo Money collaboration.
A DraftKings spokesperson emphasized the importance of faster payouts and how it can be a differentiating factor for customers choosing between gambling operators.
DraftKings offers instant payment options to its customers, along with payments security, the spokesperson said in an interview posted in December 2022.
“We believe safe and regulated sports betting products are essential,” the DraftKings spokesperson said at the time.
During its most recent earnings call, held in May, DraftKings said its revenue increased by 84% in the first quarter compared to a year earlier. Executives attributed this to strong customer acquisition, as the company expanded to newer markets like Ohio and Massachusetts.