Keep an eye on gambling stocks, like Draftkings (DKNG), we noted in a morning briefing.
As we noted, the stock is just starting to break above triple top resistance dating back to late April. If DKNG can maintain its momentum, we could eventually see a test of prior highs of $73.
In addition, JC O’Hara, chief market technician at MKM Partners, as quoted by CNBC said, “It is reestablishing itself in an uptrend, breaking back above the 150-day moving average. So rather than trying to bottom pick some of these names and make calls on economic data, let’s look where the price action is positive and that’s DraftKings.”
Plus, according to Loop Capital, as quoted by TheFly.com:
“Loop Capital analyst Daniel Adam keeps his Buy rating and $105 price target on DraftKings, saying that based on the latest monthly GGR/AGR data releases in five of the 12 states where the company is currently live, its Q3 revenues are “tracking well ahead of consensus”. Adam adds that while the Street is modeling a 22% sequential top-line decline, his analysis suggests that the decline should only be about 3%.”
Also, just moments ago, we learned that ARK Invest’s Cathie Wood picked up about $60 million in DKNG shares. Helping even more, DKNG got a boost after launching micro-betting.
In fact, according to a DKNG press release, Simplebet, the technology company reimagining the way fans engage with live sports, today announced a multi-year agreement with DraftKings to launch real-money micro-betting across the DraftKings Sportsbook.”
“Under the agreement, DraftKings will be able to offer Simplebet’s micro-betting products for the NFL, MLB and NBA and a new suite of college football products, which are the first micro-betting products available for collegiate sports. With micro-betting, DraftKings customers will now be able to wager on even more individual moments over the course of a game through the DraftKings Sportsbook,” they added.
In short, DKNG could be a slam dunk opportunity.
The post This is Why Draftkings Could be a Slam Dunk Opportunity appeared first on Morningology.
