DraftKings, the online sports betting company, saw an increase in its stock price on Friday following the release of its solid third-quarter financial results. Analysts on Wall Street expressed their optimism about the company's performance.
Benchmark analyst Mike Hickey maintained his Buy rating on the stock, setting a price target of $37. He noted that DraftKings has effectively acquired new customers and maintained high levels of customer engagement.
During the quarter, DraftKings reported an increase in monthly unique players to 2.3 million, marking a 40% jump from the previous year. The average revenue per monthly unique player also saw a 14% increase, amounting to $114.
In terms of financials, DraftKings posted a third-quarter loss of 61 cents per share on revenue of $790 million. This surpassed analysts' expectations, as they predicted a loss of 69 cents per share on revenue of $704.9 million. In the same period last year, the company had reported a loss of $1 per share on revenue of $501.9 million.
Truist Securities analyst Barry Jonas, who rates the stock as a Buy with a $44 price target, emphasized DraftKings as one of the best growth stories in the gaming industry. He expressed strong conviction that DraftKings will be a long-term winner in the interactive space.
Despite a more saturated competitive environment, DraftKings raised its 2023 revenue guidance to be between $3.67 billion and $3.72 billion. This is an increase from its previous forecast of $3.46 billion to $3.54 billion.
Chief Executive Jason Robins credited the company's product and technology investments, as well as excellent preparation and execution by the entire organization, for their fantastic third-quarter results.
Overall, DraftKings continues to demonstrate its strength and potential in the online sports betting market.