The last time I weighed in DraftKings (NASDAQ:DKNG), I said: “… does not count [DKNG] out of stock for now. With the boom in sports gambling just beginning, DKNG could be one of the big winners. It was June 2, when DKNG stock closed the day at $ 50.97 per share.
Nonetheless, DraftKings shares only hit $ 51.44 after hitting a high of nearly $ 63.60, hammered on news that it wants to buy UK gambling company Entain PLC for $ 20 billion. of dollars. However, as I said on June 2, âdon’t count the stock just yet. The launch of the NFL is underway and the company continues to expand in the United States. As I also noted on June 2, by 2023 the global online gambling market could be worth $ 100 billion, according to Roundhill Investments. Additionally, Roundhill said analysts at “Macquarie believe that online sports betting will be available to 96% of the US population by 2025.”
By helping, ARK Invest by Cathie Wood has just bought about 770,000 DKNG shares.
These catalysts alone could drive up DKNG stock in the future.
Equally impressive is profit growth
DraftKings scored with another round of solid wins, too much. In the second quarter, revenue jumped about 320% year-over-year (YOY) to $ 298 million from $ 71 million. Monthly single payers jumped 281% to 1.1 million. Average income per single payer increased 26% year over year to $ 80, further evidence that players are placing more bets.
Better still, the company raised its revenue forecast to a new range of $ 1.21 billion to $ 1.29 billion, from a previous range of $ 1.05 billion to $ 1.15 billion.
Additionally, Loop Capital analyst Daniel Adam has a buy rating on the stock, with a target price of $ 105. In fact, according to the analyst, based on gross gaming revenue (GGR) and average daily rate (ADR), third quarter revenue is “well ahead of consensus.”
NFL season could be huge for DraftKings Stock
With the 2021 NFL season now in week three, nearly 45.2 million Americans should bet on games this year. Just as Americans can now legally bet on sports in 26 states, and Washington, DC Better, five more states may soon be offering legal sports betting soon.
Feed the fire, Engineering sports (NYSE:GENI) has entered into an agreement with DraftKings to provide sports betting data and a suite of NFL-related products. In addition, DraftKings has entered into an agreement with Simplebet to launch micro-betting operations for the NFL, Major League Baseball and the NBA; All of this could fuel the rise in DKNG stock even further.
DraftKings pushes higher on NFT offering
Additionally, DKNG shares rose even more sharply following the announcement of a non-fungible Derek Jeter token (NFT).
With this in mind, the sale of the NFT went extremely well. In fact, “Jeter has sold over 10,000 digital collectibles for a total of approximately $ 800,000.” In addition, the NFT was in such high demand that the “first set sold out quickly. [on Sept. 7], with the entry-level $ 12 NFT selling in the secondary market for almost $ 200â¦ â
So while most NFTs don’t generate a significant amount of buzz, it could be huge.
The basics about DKNG shares
Collectively, and repeating what I said on June 2nd, I still think âDKNG could be one of the top winnersâ.
On the one hand, the NFL kickoff means millions of Americans will likely bet on games this year. Second, DraftKings continues to sign major deals as it expands into the United States. Three, earnings growth continues to be impressive as well as the outlook.
Finally, by 2023, the global online gambling market could be worth $ 100 billion. And if you look at how things are going, there is no sign of slowing growth.
âIn 2021, 25 state legislatures introduced legislation to legalize mobile sports betting, 5 state legislatures introduced legislation to extend their existing sports betting frameworks and 2 state legislatures introduced legislation to legalize mobile sports betting. sports betting limited to points of sale â, according to a Drafkings press release.
So with all of that in mind, that’s why DKNG stock could … go … all … the … way.
As of the publication date, Ian Cooper does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Ian Cooper, a contributor of InvestorPlace.com, analyzes stocks and options for online reviews since 1999.