DraftKings Stock Forecast (DKNG): Is this the best sports gambling company to own?
At present, DraftKings is confronted with intense competition, heightened costs associated with acquiring customers, and troubles with profitability. As a result, analysts are divided as to which course of action they would advise investors to pursue.
Table of Contents
DKNG Stock Ratings
BNP Paribas analyst Alistair Johnson downgraded DraftKings’ rating from Neutral to Underperform and set a price target of $28.
In contrast, Stifel analyst Jeffrey Stantial raised the price target for the stock from $40 to $45 and elevated it from Hold to Buy.
Although both BNP and Stifel analysts recognize the difficulties that DraftKings is encountering, they offer distinct interpretations of the situation.
Johnson considers forthcoming obstacles to be a rationale for divesting the stock, underscoring the imperative for DraftKings to reduce expenditures on customer acquisition and retention to fulfill profit margin objectives.
Stantial, conversely, perceives these obstacles as a chance to acquire.
Although another analyst acknowledges the possibility of Flutter competition having a short-term impact on DraftKings, he contends that the challenges in the near future are diminishing, thereby enabling investors to realign their attention toward the fundamental outlook.
Stantial attributes an already remarkable guided EBITDA path to several factors, including robust same-state handle growth, structural hold-rate expansion, marketing/promotion discipline, and fixed cost efficiencies.
SEE RELATED: $TSLA Stock Forecast 2025
Let’s see the upcoming price direction of this stock from the DKNG technical analysis:
DraftKings Inc Stock (DKNG) Weekly Chart
In the weekly chart of DKNG, ongoing buying pressure is visible, supported by the rising Moving Average. Moreover, the price formed a valid bottom before forming the upward pressure, which suggests more buying pressure in the coming weeks.
A bullish pennant continuation is present in the monthly candlestick pattern, while the most recent candle suggests an upward pressure after a bullish inside bar formation.
Moreover, the volume structure suggests a similar outlook, where the most recent high volume level is at the bottom. As the ongoing buying pressure is above the high volume level, we may consider the bullish signal potent.
Coming to the weekly chart- the potential U-pattern formation could take the price higher at the 64.28 level, which is 74% higher than the current price.
The dynamic 20-week EMA works as immediate support, while the bullish slope is present in the Relative Strength Index (RSI).
The most recent weekly candle came with a bullish breakout from the descending channel breakout.
Based on this structure, a bullish continuation is more likely to provide a decent trading opportunity. The primary outlook is to wait for a valid breakout above the 39.46 level, which could increase the price towards the 65.00 area.
On the other hand, a downside correction is possible towards the 25.74 level before forming another bullish signal.
However, a deeper correction with consolidation below this level could be an alarming sign to bulls. In that case, the price may extend the loss towards the 9.61 low.
Draftkings Inc Stock (DKNG) Ichimoku Cloud Analysis
According to the Ichimoku Cloud structure, the current market momentum of DKNG stock is bullish as the recent price trades above the Cloud support higher high formations.
Moreover, a strong bullish slope is visible in the Future Cloud, which suggests a confluence bullish factor of this stock.
In the indicator window, the MACD Histogram shows an NPN formation, suggesting an ongoing selling pressure as a downside correction.
Moreover, the Signal line is above the neutral level, which could eliminate the bearish possibility with a bullish Histogram formation.
Based on the Draftkings Inc. Stock (DKNG) outlook for 2024, the ongoing buying pressure from the Kijun Sen support could extend the current bullish leg towards the 64.74 key resistance level.
The immediate support is found at the 31.96 level, which is above the 25.75 major level. Below these lines, investors might expect extensive downside pressure towards the 16.00 to 12.00 area.
SEE RELATED STOCK FORECASTS: $CRWD | $PLTR | $MULN
Draftkings Inc Stock (DKNG) Ichimoku Cloud Analysis
In the daily DKNG chart, a bullish rally base rally formation is visible, where the current demand zone is at the 34.10 to 30.20 area.
Therefore, as long as the current price trades above the crucial demand zone, we may expect bulls to continue pressure in the coming days.
The Traders Dynamic Index shows ongoing buying pressure as the current TDI level is above the 50.00 line. Moreover, a stable market is visible above the dynamic 20-day EMA, which acts as immediate support.
Based on this outlook, a bullish trend extension is possible, where the main aim is to test the 43.91 level, which is the 161.8% Fibonacci Extension level from the current swing.
On the other hand, a downside correction up to the 29.10 high volume level could keep the bullish possibility intact. A bearish daily candle below the 25.75 support level could lower the price below the 20.00 area.
Is Draftkings Inc Stock (DKNG) A Buy?
Based on the current market outlook, DKNG stock has a higher possibility of moving higher in 2024 and presents short-term upside. The primary intention for this stock is to find a long opportunity from the intraday chart to complete the U pattern.
Our 2025 DraftKings stock forecast is bullish as of writing this with a PT of $65. However, if FanDuel, or new competitors (Bet365, BetMGM, Fanatics, ESPNBet), start to take market share, we will update our readers.
Disclaimer: This is not financial advice. We use technical analysis (100% human charting) and sentiment to make our best estimates. Please consult a licensed financial advisor prior to investing.
