Draft Kings (DKNG) is an online sports book / betting company in the USA and listed on the NYSE. Todays price of $48.99 represents very good value indeed, with professional analysts predicting an average medium range price of $65 The more bullish amongst them are forecasting up to $107!
So why the positive outlook? Well firstly the USA is way behind the curve in terms of online betting with only 7 states currently allowing mobile betting activities. What’s particularly interesting is that other states inclusing New York, are close to legalising online betting in a matter of months. NY Governor Cuomo has already told the press today that he is going to push for the legislation to be signed, which is hardly surprsng when you look at the amount of tax that will be generated. Lets not also forget that NY has a state deficit currently of $15 billion due to the impact of the pandemic.
So with lockdown predicted to continue for many more months to come, these states will be looking to get on board and legalise mobile betting ASAP. Draft Kings are leading the way in the states, currently with a whopping 25% market share! They appear to be pumping all their profits into advertising, so we can expect their share to increase as more states open up.