DraftKings Stock (DKNG) Jumps 5% as Americans Wager $1.76 Billion on the Super Bowl
DraftKings (DKNG) stock rose 5% on February 6 as Americans wagered a record $1.76 billion on the upcoming Super Bowl, a 27% increase from last year. With 67 million expected bettors, DraftKings, holding a 25% market share in U.S. online sports betting, is set to benefit significantly. The company plans to air a generic 30-second ad during the game, marking its fourth consecutive year of advertising. Analysts rate DKNG stock as a Strong Buy, with an average price target of $42.89, indicating a potential 60.10% upside.
The stock of sports betting platform DraftKings (DKNG) is up 5% on Feb. 6 as Americans wager a record $1.76 billion on this year's Super Bowl.
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The National Football League's (NFL) championship game between the New England Patriots and Seattle Seahawks is scheduled to take place on Feb. 8 and betting on the game is bigger than ever, with wagers up 27% from the previous year, according to the American Gaming Association (AGA).
In all, 67 million Americans are expected to place a bet on the Super Bowl, which is the most watched and most-bet sporting event of the year. Betting on sports, particularly football, has exploded in popularity now that the practice has been legalized in 39 U.S. states and Washington, D.C.
A Win for DraftKings
DraftKings, which holds a 25% share of the U.S. online sports betting market, is expected to be a big beneficiary of the heavy betting on this year's Super Bowl. Accordingly, the company has been marketing and promoting the big game in recent weeks.
DraftKings is also planning to run a 30-second advertisement during this year's Super Bowl, the fourth consecutive time the company has marketed itself during the telecast. However, the NFL prevents companies such as DraftKings from promoting their prediction markets during the Super Bowl. This year's ad from DraftKings is expected to be generic in nature.
Is DKNG Stock a Buy?
DraftKings' stock has a consensus Strong Buy rating among 30 Wall Street analysts. That rating is based on 24 Buy and six Hold recommendations issued in the last three months. The average DKNG price target of $42.89 implies 60.10% upside from current levels.
