The stock also benefited from the Pac-12’s decision to resume its football season Nov. 6. That move, of course, gives DraftKings' customers more games on which to bet.
As for Argus’s analysis, “The online gaming industry is in the early stages of growth, with only 3% of gross gaming revenue in the U.S. generated online, compared to 45% in more mature online gaming markets such as the U.K,” Argus analyst John Eade wrote in a commentary.
“As more states loosen restrictions, we expect DraftKings to benefit from its market leadership. Investors have recognized the company's potential, and the shares have outperformed since the company went public in April 2020. Technical patterns are positive as well," Argus said.
DraftKings recently traded at $52.58, up 3.98%, and has skyrocketed 392% year to date.
"Though we don't expect DraftKings to post a profit this year or next, we do look for profitability in 2022 and solid growth over the remainder of the decade as the company benefits from economies of scale,” Eade said.
“We view DKNG as appropriate only for risk-tolerant investors as part of a diversified portfolio," the analyst added.
Last week, DraftKings agreed to become the official sports-betting, iGaming and daily fantasy partner for the New York Giants, making it the first NFL team to sign such an integrated deal.
DraftKings gets banners and brand placements across MetLife Stadium during Giants home games.