During the company’s investor day, DraftKings (NASDAQ: DKNG) saw a significant increase of 4.13%, setting a new 52-week high, driven by upbeat remarks and confident projections. The average daily trade volume roughly doubled along with this spike.
DraftKings Sets Positive Tone for Future
DraftKings raised sales and profits before interest, taxes, depreciation, and amortization (EBITDA) projections for 2023 earlier this month, raising expectations even more. The business released encouraging projections for 2025, estimating revenue in the mid-$5 billion range and adjusted EBITDA of $900 million, which maintained the good pace. Additional growth was predicted for 2026 and 2028, with projected amounts of $6.2 billion and $1.4 billion and $7.1 billion and $2.1 billion, respectively.
In an optimistic statement, DraftKings CEO Jason Robins said, “We believe that our velocity and pace of product innovation will continue to be faster than any other operator in the U.S. online gaming space.”
Experts Upbeat: Forecasts for 2025 and Later Raise Stock Ratings
Sell-side analysts mirrored this optimism, with Piper Sandler repeating a “overweight” rating and a $40 price target while stating that he was “impressed” with DraftKings’ predictions. In a similar vein, Craig-Hallum increased its price estimate from $40 to $45 and retained a “buy” grade. On this positive day, DraftKings closed at slightly over $37.
DraftKings just reaffirmed its status as the top provider of iGaming and gross revenue share for online sports betting in the United States. Despite this, the company believes there is still plenty of room for expansion. Based only on current operational conditions, the company projects an addressable market of $30 billion by 2028, up from the current $20 billion.
CEO Robins emphasized that as additional states in the US adopt online sports betting (OSB) and iGaming, there is a chance for substantial revenue growth. At least eight states are expected to pass legislation pertaining to sports betting, and a similar number are studying legislation pertaining to online casinos, according to Robins. Georgia is presently the only sizable state that is expected to authorize sports betting in the upcoming year.
DraftKings CEO Satisfied with Continued Performance
DraftKings recognizes the value of a changing product lineup in the ever-changing world of iGaming and online sports betting. The business introduced progressive parlays, which let bettors get payout even if certain legs of the wager fail, in response to the success of same-game parlays (SGPs).
CEO Robins expressed enthusiasm for the Progressive Parlay offering, predicting a better hold percentage due to a higher parlay mix and leg count. He underlined how appealing it is to clients who may profit from their parlays even if they don’t win on every wager.
With a focus on innovation, product diversification, and market development, DraftKings is well-positioned for sustainable growth in the highly competitive U.S. online gaming sector, as seen by its strong predictions and good investor day reaction. The outlook reaffirms DraftKings’ commitment to leading the industry through groundbreaking initiatives, despite DraftKings laying off 3.5% of its workforce in early 2023.