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Investing Insights: DraftKings – A Sure Bet or a Gamble? Insights into DraftKings’ Potential Amidst March Madness

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During a recent jaunt to the Bahamas, the allure of gambling beckoned, but I resisted. It’s a game where the house always wins, a truth affirmed by the grandeur of MGM Resorts (MGM), Wynn Resorts (WYNN), and Las Vegas Sands (LVS). While my friends tried their luck, only a solitary victor emerged. The moral? When the odds are in your favor, take the bet.

Reasons to Back DraftKings

Company Overview

Ranked #3 by Zacks, DraftKings (DKNG) leads the online sports entertainment and gambling realm in the US. With offerings spanning from daily fantasy sports competitions to sports betting, DraftKings provides an immersive platform for sports aficionados to engage with their favorite games.

The Online Gambling Boom

Since a pivotal 2018 Supreme Court ruling, US states have embraced sports gambling, propelling the industry to a $10 billion titan. In a landscape where nearly half of the country blesses sports betting, opportunities abound.

Seizing the Early Bird Advantage

Launching first into a new market affords a company the upper hand – a phenomenon DraftKings has aced. With approvals in 22 states, DraftKings secured a pivotal slice of the sports gambling pie, setting a standard that promises prolonged profits.

The March Madness Effect

NCAA’s renowned basketball tournament typically ignites a surge in DKNG stock, with post-March average returns as follows:

April = 16.8%

May = 30.8%

Positive Price & Volume Signals

For investors, an upward-trending DKNG stock hitting the 10-week moving average spells high reward with low risk. Dubbed a β€œhugger,” DKNG’s smooth trajectory along the moving average rewards stakeholders. Moreover, a 32% volume turnover spike over the 50-day average signifies institutional interest in shares.

Zacks Investment Research
Image Source: Zacks Investment Research

Beating Wall Street Expectations

DraftKings’ track record speaks volumes, outperforming Wall St. predictions in seven of the last nine quarters.

Zacks Investment Research
Image Source: Zacks Investment Research

The Barstool Sports Gamechanger

In a strategic move, DraftKings partnered with the dynamic Barstool Sports for a sports betting alliance. This collaboration is poised to amplify DKNG’s profits as online betting requires strategic marketing, offering a diverse array of betting options like intra-game bets.

Final Verdict

DraftKings emerges as a compelling prospect amidst the boisterous realm of online sports entertainment and gambling. With a head start in the market, consistent performance, and strategic partnerships such as with Barstool Sports, DraftKings exemplifies growth and profitability potential in this burgeoning sector.

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Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

MGM Resorts International (MGM) : Free Stock Analysis Report

DraftKings Inc. (DKNG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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