Though DraftKings' (DKNG) -) stock fell hard in 2022, the company's shares -- like many other tech firms -- have been rising throughout 2023. DraftKings' stock is up around 177% for the year so far on news of consistent revenue growth.
The company reported $875 million in revenue for the second quarter of the year, an 88% increase from last year. This most recent quarter also marks the first quarter in which DraftKings has ever turned a profit, earning $.14 per share, handily beating out the Street expectation of a $.14 loss per share. The company said that it expects profitability to become a theme throughout 2023 and 2024.
DON'T MISS: DraftKings stock could still rally more than 90%
DraftKings also lifted its revenue guidance for the rest of the year to around $3.5 billion in the wake of a strong quarter that saw a 44% increase in monthly unique players and a 33% increase in average player revenue.
In the midst of this, Wells Fargo analyst Daniel Politzer upgraded the stock to overweight from equal weight, lifting his price target to $37 from $28. Politzer thinks DraftKings could deliver $1 billion in adjusted Ebitda in 2025.
Jim Cramer, host of "Mad Money," is in line with Politzer's thinking. He said Aug. 7: "DraftKings should have been up today. The stock has been on fire. You want to be in it before football season, I'll tell you that much."
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Amid all these bullish outlooks, Cathie Wood, CEO and investment lead of Ark Invest, trimmed Ark's holding in DraftKings by around $3 million. Ark's flagship Innovation ETF (ARKK) -) sold 88,133 shares and Ark's Next Generation Internet ETF sold a little more than 6,000 shares.
Even after the selloff, DraftKings remains one of Ark Innovation's largest holdings, weighted at 4.5% of the fund. The ETF owns around 11.5 million shares of DraftKings, valued at $364.1 million.
DraftKings stock closed Aug. 7 down slightly at $31.63 per share.
