DraftKings Inc. (DKNG): A Bull Case Theory

DraftKings (DKNG) is simply a ascendant subordinate successful the online sports betting market. With a best-in-class idiosyncratic interface and a beardown marque presence, DraftKings has built a competitory vantage implicit accepted casino-operated sportsbooks. The institution is presently ineligible successful 25 U.S. states and continues expanding its footprint arsenic caller markets open. Despite its premium valuation—trading astatine 28.4x and 19.5x estimated net for 2025 and 2026—its projected 46% EPS maturation successful 2026 makes it an charismatic semipermanent play. The banal is down 28% from its 30-day precocious and 48% from its all-time high, offering a compelling introduction point. While regulatory risks and stock-based compensation dilution stay concerns. At 20x projected 2027 FCF minus SBC, the banal presents a imaginable 50% upside. The company’s beardown marketplace positioning, continued state-by-state legalization, and absorption connected profitability marque it a high-quality concern opportunity, particularly astatine existent levels.

DraftKings Inc. (DKNG) is not connected our database of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge money portfolios held DKNG astatine the extremity of the 4th fourth which was 54 successful the erstwhile quarter. While we admit the hazard and imaginable of DKNG arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is much promising than DKNG but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This nonfiction was primitively published astatine Insider Monkey.