Benchmark Maintains Buy on DraftKings, Raises Price Target to $52
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 03 2024
0mins
Source: Benzinga
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Analyst Views on DKNG
Wall Street analysts forecast DKNG stock price to rise
29 Analyst Rating
23 Buy
6 Hold
0 Sell
Strong Buy
Current: 26.910
Low
30.00
Averages
42.69
High
53.00
Current: 26.910
Low
30.00
Averages
42.69
High
53.00
About DKNG
DraftKings Inc. is a digital sports entertainment and gaming company. It provides users with online and retail sports betting (together, Sportsbook), online casino (iGaming) and daily fantasy sports product offerings, as well as digital lottery courier, media, and other product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. It operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. It owns Jackpocket, a digital lottery courier app in the United States. It is both an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA. It also owns and operates DraftKings Network, a multi-platform content ecosystem.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
John Arnold Funds Research on Sports Betting Risks
- Research Funding: John Arnold is awarding $2.6 million to universities and think tanks to study the effects of sports gambling on financial well-being, household formation, mental health, and consumer behavior, highlighting his concern over the potential risks associated with the gambling industry.
- Market Changes: Since the legalization of sports betting in the U.S. in 2018, participation in online betting has risen from 19% to 27%, reflecting the popularity of mobile apps like DraftKings and FanDuel, which have significantly lowered barriers to entry and expanded market size.
- Legislative Focus: Arnold is meeting with lawmakers to advocate for stronger regulations on sports betting and prediction markets, emphasizing the changes in product intensity and accessibility, and urging legislators to consider these factors when crafting relevant laws.
- Industry Revenue Growth: The sports betting industry reached a record $16.96 billion in revenue in 2025, indicating rapid market growth, while trading volume on prediction markets surged from $5 billion in September to $24 billion in April, demonstrating increasing investor interest in this emerging market.
See More
Michael Burry Increases Stakes in DKNG and FLUT Stocks
- Investor Confidence Rebound: Renowned investor Michael Burry has established full-sized long positions in sports betting leaders Flutter Entertainment and DraftKings, allocating 60% and 40% of his portfolio respectively, indicating strong confidence in these companies.
- Stock Price Recovery: Following Burry's announcement, DraftKings and Flutter saw their share prices rise by 1% and 2.7%, respectively, despite experiencing declines of 36% and 61% over the past year, suggesting a shift in market perception regarding their future potential.
- Regulatory Risk Anticipation: Burry highlighted that current prediction trading platforms exploit a
See More
Michael Burry Takes New Stake in DraftKings Amid Market Signals
- Stock Price Focus: DraftKings (DKNG) shares are in the spotlight this week as 'Big Short' investor Michael Burry disclosed a new stake in the online betting platform, with the stock down 36% year-over-year but up nearly 10% month-over-month, indicating renewed buyer confidence in the short term.
- Technical Signal Analysis: Currently, DKNG is on track for its fifth consecutive day of gains, trading above its 50-day moving average, suggesting potential for continued upward movement; however, it remains below the 200-day moving average, indicating overhead resistance.
- Moving Average Crossover: The crossover of the 50-day moving average over the 100-day moving average is typically a bullish sign for sustained upward momentum, while the RSI at around 56.01 suggests the stock is not yet overbought, leaving room for further gains.
- Market Watch: Despite the recent strength, traders are closely watching whether DKNG can break through its 200-day moving average to confirm the sustainability of its rebound, especially with backing from high-profile investors.
See More
Michael Burry Increases Stake in DraftKings and Flutter Entertainment
- Investment Positioning: Michael Burry has established a full-sized position in regulated sports-betting operators DraftKings and Flutter Entertainment, allocating approximately 60% and 40% respectively, purchasing shares at about $107 and in the low $26 range, indicating his long-term confidence in both companies.
- Market Outlook: Burry believes that despite the rapid expansion of prediction markets weighing on the stock prices of both companies, they remain attractive businesses that could perform better in the future as regulatory measures tighten.
- Regulatory Dynamics: The U.S. Commodity Futures Trading Commission is engaged in legal battles with multiple states to clarify regulatory authority over prediction markets, which could lead to these markets being subjected to stricter regulations and taxation, a development Burry views positively.
- Business Transformation: DraftKings' shares have fallen about 45% from their 52-week high, while Flutter has slid 65%; Burry notes that DraftKings is undergoing a business transformation, and although Flutter has suffered from past capital misallocation, its fundamentals remain strong with significant scale advantages.
See More
Michael Burry Discloses New Stakes in DraftKings and Flutter
- Investor Confidence Boost: Michael Burry's disclosure of new stakes in DraftKings (DKNG) and Flutter (FLUT) in a Substack post indicates his optimistic outlook on the future of these online betting platforms, potentially attracting more investor attention and driving stock prices higher.
- Operational Transition Potential: Burry notes that DraftKings is inflecting as an operating business, suggesting an increase in its future value, which may enhance the company's position in the competitive online betting market.
- Flutter's Fundamentals: Despite past capital misallocation issues, Burry believes Flutter's fundamentals remain strong with excellent operational scale, which could yield substantial returns for investors in the future.
- Market Regulation Outlook: Burry mentions that prediction markets like Kalshi and Polymarket may face regulatory and taxation impacts, and while they pose a threat, this could also create a more stable market environment for DraftKings and Flutter, fostering long-term growth.
See More
Zuckerberg Plans to Develop Prediction Market App
- Market Trend Focus: Zuckerberg has directed a team at Meta to develop a prediction market app similar to Polymarket and Kalshi, indicating the company's attention to emerging social behaviors, which could attract younger users and enhance user engagement.
- App Functionality Concept: The app, internally referred to as 'Arena', is expected to utilize a video game-style points system to encourage user participation, although Meta has not ruled out the possibility of monetary betting, which could influence user engagement and market competition.
- Market Reaction: Following the report, stocks of DraftKings and Flutter Entertainment fell by over 2%, reflecting market concerns about the potential impact of Meta's entry into the prediction market, which may intensify pressure on existing competitors.
- User Participation Status: Recent studies indicate that 32% of Gen Z and 24% of millennials are either participating in or considering prediction markets, a trend that could drive acceptance and usage rates of Meta's 'Arena' app among younger demographics.
See More
John Arnold Funds Research on Sports Betting Risks
- Research Funding: John Arnold is awarding $2.6 million to universities and think tanks to study the effects of sports gambling on financial well-being, household formation, mental health, and consumer behavior, highlighting his concern over the potential risks associated with the gambling industry.
- Market Changes: Since the legalization of sports betting in the U.S. in 2018, participation in online betting has risen from 19% to 27%, reflecting the popularity of mobile apps like DraftKings and FanDuel, which have significantly lowered barriers to entry and expanded market size.
- Legislative Focus: Arnold is meeting with lawmakers to advocate for stronger regulations on sports betting and prediction markets, emphasizing the changes in product intensity and accessibility, and urging legislators to consider these factors when crafting relevant laws.
- Industry Revenue Growth: The sports betting industry reached a record $16.96 billion in revenue in 2025, indicating rapid market growth, while trading volume on prediction markets surged from $5 billion in September to $24 billion in April, demonstrating increasing investor interest in this emerging market.
See More
Michael Burry Increases Stakes in DKNG and FLUT Stocks
- Investor Confidence Rebound: Renowned investor Michael Burry has established full-sized long positions in sports betting leaders Flutter Entertainment and DraftKings, allocating 60% and 40% of his portfolio respectively, indicating strong confidence in these companies.
- Stock Price Recovery: Following Burry's announcement, DraftKings and Flutter saw their share prices rise by 1% and 2.7%, respectively, despite experiencing declines of 36% and 61% over the past year, suggesting a shift in market perception regarding their future potential.
- Regulatory Risk Anticipation: Burry highlighted that current prediction trading platforms exploit a
See More
Michael Burry Takes New Stake in DraftKings Amid Market Signals
- Stock Price Focus: DraftKings (DKNG) shares are in the spotlight this week as 'Big Short' investor Michael Burry disclosed a new stake in the online betting platform, with the stock down 36% year-over-year but up nearly 10% month-over-month, indicating renewed buyer confidence in the short term.
- Technical Signal Analysis: Currently, DKNG is on track for its fifth consecutive day of gains, trading above its 50-day moving average, suggesting potential for continued upward movement; however, it remains below the 200-day moving average, indicating overhead resistance.
- Moving Average Crossover: The crossover of the 50-day moving average over the 100-day moving average is typically a bullish sign for sustained upward momentum, while the RSI at around 56.01 suggests the stock is not yet overbought, leaving room for further gains.
- Market Watch: Despite the recent strength, traders are closely watching whether DKNG can break through its 200-day moving average to confirm the sustainability of its rebound, especially with backing from high-profile investors.
See More
Michael Burry Increases Stake in DraftKings and Flutter Entertainment
- Investment Positioning: Michael Burry has established a full-sized position in regulated sports-betting operators DraftKings and Flutter Entertainment, allocating approximately 60% and 40% respectively, purchasing shares at about $107 and in the low $26 range, indicating his long-term confidence in both companies.
- Market Outlook: Burry believes that despite the rapid expansion of prediction markets weighing on the stock prices of both companies, they remain attractive businesses that could perform better in the future as regulatory measures tighten.
- Regulatory Dynamics: The U.S. Commodity Futures Trading Commission is engaged in legal battles with multiple states to clarify regulatory authority over prediction markets, which could lead to these markets being subjected to stricter regulations and taxation, a development Burry views positively.
- Business Transformation: DraftKings' shares have fallen about 45% from their 52-week high, while Flutter has slid 65%; Burry notes that DraftKings is undergoing a business transformation, and although Flutter has suffered from past capital misallocation, its fundamentals remain strong with significant scale advantages.
See More
Michael Burry Discloses New Stakes in DraftKings and Flutter
- Investor Confidence Boost: Michael Burry's disclosure of new stakes in DraftKings (DKNG) and Flutter (FLUT) in a Substack post indicates his optimistic outlook on the future of these online betting platforms, potentially attracting more investor attention and driving stock prices higher.
- Operational Transition Potential: Burry notes that DraftKings is inflecting as an operating business, suggesting an increase in its future value, which may enhance the company's position in the competitive online betting market.
- Flutter's Fundamentals: Despite past capital misallocation issues, Burry believes Flutter's fundamentals remain strong with excellent operational scale, which could yield substantial returns for investors in the future.
- Market Regulation Outlook: Burry mentions that prediction markets like Kalshi and Polymarket may face regulatory and taxation impacts, and while they pose a threat, this could also create a more stable market environment for DraftKings and Flutter, fostering long-term growth.
See More
Zuckerberg Plans to Develop Prediction Market App
- Market Trend Focus: Zuckerberg has directed a team at Meta to develop a prediction market app similar to Polymarket and Kalshi, indicating the company's attention to emerging social behaviors, which could attract younger users and enhance user engagement.
- App Functionality Concept: The app, internally referred to as 'Arena', is expected to utilize a video game-style points system to encourage user participation, although Meta has not ruled out the possibility of monetary betting, which could influence user engagement and market competition.
- Market Reaction: Following the report, stocks of DraftKings and Flutter Entertainment fell by over 2%, reflecting market concerns about the potential impact of Meta's entry into the prediction market, which may intensify pressure on existing competitors.
- User Participation Status: Recent studies indicate that 32% of Gen Z and 24% of millennials are either participating in or considering prediction markets, a trend that could drive acceptance and usage rates of Meta's 'Arena' app among younger demographics.
See More
