More Upside than AI Stocks? You Bet!
Shares of DraftKings have more room to run in 2025.
We were excited about (NASDAQ: DKNG) heading into their latest earnings call, but we were not the only ones as their monthly unique players spiked 36% to 4.8 million customers in Q4.
The sports betting industry has been on fire while tariffs and political headwinds have paused the recent tech trade. Today, over 30 states offer legal betting options. Many potential investors might not know that states that don't offer traditional sports betting yet (e.g., California) still offer DraftKings sports betting contests (Pick6) linked to player performances vs. final game scores.
The total addressable market for online sports betting and iGaming is projected to reach over $40 billion by 2030. As one of the most recognized names in the industry, DraftKings continues to secure licensing deals and form partnerships with major sports leagues to dominate online sportsbooks and daily fantasy sports.
DraftKings has been posting impressive revenue growth quarter after quarter. With continued state-by-state legalization, international expansion potential, and new AI tools, this growth shows no signs of slowing down.
If you're like most RISK REWARD STOCK readers, you've probably been waiting for some sort of AI mic drop for this industry, and here it is. DraftKings utilizes AI-powered personalized betting via machine learning algorithms that analyze user behavior to provide tailored betting recommendations. AI is also used for fraud detection to identify suspicious activity and ensure a fair and secure platform while optimizing live, real-time odds-setting.
Finally, if you're still hoping to complete your Investment Buzzword Bingo Card, you should know that DraftKings is exploring blockchain technology for safer transactions to enhance trust and security within its platform.
While the opportunity with DraftKings is massive, it's essential to consider the risks related to a highly regulated industry and competition from FanDuel, BetMGM, and Caesars.
If you're looking for a high-growth stock in a rapidly expanding industry that's not tethered to cyclical semiconductor fluctuations or Magnificent Seven tie-ins, DraftKings might be the perfect long-term addition to your portfolio.
**This is not investment advice, and all thoughts and opinions expressed by Risk Reward Stocks are for entertainment purposes only.