Investors putting money into DraftKings stock are betting that sports fans and stock watchers think alike: It's always more fun with a little skin in the game.
DraftKings, one of the first bookmakers to ride the early wave of sports betting legalization in the U.S., continues to build its presence through heavy advertising. The sports betting company continues to secure approval to operate in states where sports betting is legalized.
Audio Version Of Podcast Episode
DraftKings stock broke out on Nov. 6 from a consolidation period that began in August. A bullish reaction to earnings provided the catalyst that fueled shares above their pivot point of 34.49.
Huge volume spikes on up days in the month of November indicate institutional investors are placing big bets on DraftKings stock, underscored by its Accumulation/Distribution Rating of A.
The number of funds with ownership in DraftKings stock has risen from 398 funds in Q4 2022 to 648 funds in Q3 2023 according to MarketSmith.
The sportsbook is ranked No. 1 in the Leisure-Gaming and Equipment group, outpacing peers like games maker Light & Wonder and more traditional names like casino operator Las Vegas Sands. DraftKings stock currently holds a Composite Rating of 85 according to IBD Research.
The stock joined the IBD Leaderboard Watchlist on Sept. 14 and is currently a key part of the IBD Leaders List. While the company is not yet profitable, it continues to grow its revenue at a strong pace.
Betting Rivals Close In On DraftKings Stock
DraftKings stock maintains its first-mover advantage by pressing into new markets as soon as sports betting is legalized by the state. DraftKings hopes to use that advantage to hedge itself against powerful new entrants. In August, Disney announced a deal with bookmaker Penn Entertainment to launch its own betting platform, ESPN Bet. For Disney, the move hopes to drive audience engagement with ESPN through the partnership.
Disney's decision to use the lauded ESPN name to enter the world of sports betting is closely tied to sports betting's own path to legalization. Steadily declining revenues from linear television and the rise of streaming has pushed the world of sports to seek additional sources of revenue and audience engagement.
Check out this week's podcast episode for a discussion of DraftKings stock and strategies to help your portfolio score.
