DKNG - DraftKings: A Long-Term Bet On Online Gambling Growth
2024-04-22 17:55:03 ET
Summary
- Interest in sports betting is at an all-time high, as shown in record betting activities on this year’s Super Bowl and March Madness tournament.
- DraftKings is gaining market share, which could be attributed to its presence in more markets than its competitors.
- DraftKings could generate $5.5 billion in adjusted EBITDA in 2030 due to the expected growth in the sports betting industry as well as its acquisition of Jackpocket.
- My price target for DraftKings is $103 per share, representing 153% upside from current levels.
DraftKings Inc. ( DKNG ) has been trending upwards since late 2022 as its stock is up 90% over the past year and 15% on a YTD basis. With that in mind, I believe DraftKings has more upside to realize in the coming years due to the substantial growth in online gambling and sports betting more specifically. This is seen by the record betting activity on this year’s Super Bowl, as well as the men’s and women’s NCAA Basketball tournaments. In my opinion, the growth witnessed by the sports betting industry will be a main driver to substantial revenue growth for DraftKings, considering its position as the number 2 sports betting platform in the US and its growing market share....
DraftKings: A Long-Term Bet On Online Gambling Growth