On January 15, we noted, “DraftKings stock saw a bump ahead of the Super Bowl over the last few years. In 2024, DKNG ran from a January low of about $32 to a high of $45.62 after the game. We expect to see more of the same ahead of the 2025 game, too.”
At the time, DKNG traded at $39.82.
Today, it’s up to $53.49 and could race even higher with March Madness starting soon.
Fueling upside, Jason Robins, CEO, highlighted a strong 2024 with a 30% year-over-year revenue growth to $4.8 billion and adjusted EBITDA improvement of $332 million to $181 million. He noted the company achieved positive free cash flow for the first time and acquired 3.5 million new customers, increasing its total customer base by 42% to 10.1 million.
The company also raised its fiscal year 2025 revenue guidance to $6.3 billion to $6.6 billion, which is 32% to 38% year-over-year growth.
Even better, JPMorgan, Wells Fargo, Citi, BTIG and Jefferies raised their price targets on the DKNG stock. Jefferies, which raised its price target to $63 from $54 with a buy rating, believes the company will “continue to see sales growth, especially from in-game betting and increasing efficiency, that will increasingly convert to EBITDA and free cash flow,” as noted by TheFly.com.
Sincerely,
Ian Cooper
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