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DraftKings Jumps 10% in Trading Debut

DraftKings, the daily fantasy sports and sports betting company, goes public Friday at a market cap of $3.3 billion.
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The daily fantasy sports and sports betting company DraftKings combined with publicly traded special-purpose acquisition company Diamond Eagle Acquisitions and SBTech and began trading Friday. 

The Boston company began trading under symbol "DKNG" with an expected market cap of $3.3 billion.  

Shares rose 10.10% to $19.21 in trading. 

“I look forward to building significantly upon our goals of continuing our state-by-state rollout and creating the most entertaining and engaging customer experiences for sports fans globally," said DraftKings Chief Executive Jason Robins in a statement.

Analysts at Craig-Hallum initiated DraftKings with a buy rating and $25 price target, noting that the company controls 60% of the daily fantasy sports market place.

The firm estimates that DraftKings can achieve a 30%+ revenue compound annual growth rate. 

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The combined companies will continue to be led by Robins and will retain DraftKings' management team. 

The timing of the move is curious as a lack of live sporting events globally due to the coronavirus pandemic makes betting on sporting events nearly impossible. 

But the sports world did get a breath of fresh air Thursday night during the live broadcast of the NFL 2020 rookie draft. 

Last night's event saw 32 of the country's top amateur football players being drafted into the league. 

Many sports books around the country were finally able to take some action on the event, the first major sporting event in the country since the National Basketball Association decided to suspend its season weeks ago. 

The draft still has six more rounds to go over the next two days. 

DraftKings has about 30% of the daily fantasy sports market. The company has expanded its gambling operation with mobile and online sports betting options offered in Indiana, New Jersey, Pennsylvania and West Virginia, as well as retail locations in Iowa, Mississippi, New Jersey and New York.