DraftKings Stock Price Hits All-Time High As Market Remains Bullish on Company’s Long-Term Future
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Despite a lack of games to bet on, the stock market is very bullish on sports gambling.
DraftKings, which is now live in five states after launching its mobile sportsbook in Colorado last week, had its best day since its debut and second-best as a public company, as another analyst took a bullish take on Wednesday.
A buy rating from the firm of Canaccord Genuity boosted DraftKings shares up more than 10% to a new closing high of $23.83.
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The buy rating follows a host of positive takes on sports gambling and DraftKings, most notably Morgan Stanley, whose analyst Thomas Allen recently predicted that weaker state budgets would compel states to generate more tax revenue and that sports gambling would be an immediate beneficiary.
Allen said his best bullish scenario was for the industry to see 51% compound annual growth and even in a bearish scenario for it to be nine percent.
DraftKings’ best day on the market came back on April 24, when the company went public, as shares were up 10.38%.