DraftKings stock leapt Thursday and flashed a bullish indicator as the winter sports season accelerated. Shares of the gambling platform continue to rally following the Jan. 11 launch of its sportsbook in Vermont. Meanwhile, UBS expects DraftKings to maintain its high market share, while Cathie Wood and ARK Invest on Wednesday sold a portion of their stock holdings.
DraftKings stock has surged over the past week following the Jan. 11 launch of its sportsbook in Vermont. The Vermont rollout marked the 26th U.S. state in which DraftKings operates, as well as in Ontario, Canada.
Elsewhere, UBS said in an early Thursday research note that DraftKings should sustain a high online sports betting (OSB) market share. DraftKings' gross gambling revenue (GGR) has trended lower over the past three months, but that is likely due to the sports calendar ramping up for the NBA compared to Q3, analyst Robin Farley wrote. Meanwhile, newly-launched rival ESPN Bet's OSB share has shown a consistent increase through Q4, but that hasn't translated to a consistent increase in the market share of revenue. UBS maintained a buy rating on DKNG stock and its $44 price target.
In a Nov. 14 investor presentation, DraftKings noted that betting participation is larger and growing faster than previously anticipated in multiple states. The company expects the OSB and iGaming total addressable market in states where DraftKings operates to leap from $20 billion in 2023 to around $30 billion in 2028. The November forecast did not include Vermont, but added that sports gambling legalization is likely to expand to new states and areas.
On Wednesday, Cathie Wood and ARK Invest unloaded 229,215 shares of DraftKings from the ARK Innovation ETF worth about $8.04 million based on the $35.07 closing price.
DraftKings Stock
DraftKings stock spiked 7% Thursday, surging above its 50-day moving average. The stock reclaimed short-term support above its 21-day exponential moving average during its 4.2% jump Wednesday. The move put the stock in an early buy zone for risk-tolerant investors.
Shares have rallied nearly 14% so far this week after the Vermont sportsbook launch.
DKNG stock is also approaching a 39.35 buy point for a seven-week base.
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