Why Is DraftKings Stock Gaining Today?
DraftKings Inc. (NASDAQ:DKNG) shares are rising, likely in sympathy with Flutter Entertainment (NYSE:FLUT), which saw a boost after issuing positive guidance for 2027.
As both companies operate in the online sports betting and iGaming sector, Flutter’s optimistic outlook appears to be creating a ripple effect, lifting DraftKings’ share movement as investors react to the overall market sentiment.
Flutter targets revenue of around $21 billion in 2027, representing a compound annual growth rate (CAGR) of 14%, based on the midpoint of U.S. and Rest of World (ROW) 2027 guidance.
Also, Flutter projects an adjusted EBITDA of over $5 billion, adjusted EBITDA margin expansion of 700 basis points, and free cash flow of around $2.5 billion by 2027.
Apart from this, Flutter approved a share buyback program of up to $5 billion, set to be implemented over the next three to four years, with a launch anticipated after the third-quarter earnings report in November 2024.
Also Read: Flutter Bets Big On US And Global Expansion: $21B Revenue Goal And $5B Buyback In Sight
The significant total addressable market (TAM) for regulated gaming is projected to reach $368 billion by 2030, with global gross gaming revenue (GGR) expected to grow at a compound annual growth rate (CAGR) of 8%.
According to Benzinga Pro, DKNG stock has gained over 52% in the past year. Investors can gain exposure to the stock via Roundhill Sports Betting & iGaming ETF (BETZ) and Pacer BlueStar Digital Entertainment ETF (NASDAQ:ODDS).
As the online sports betting market continues to evolve, DraftKings stands to benefit from Flutter’s optimistic projections and overall market growth, positioning both companies for potential success in the coming years.
DKNG, FLUT Price Actions: DraftKings shares are trading higher by 6.49% to $41.68. Flutter shares are trading higher by 6.53% at $243.07.
Photo via Shutterstock
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This article Why Is DraftKings Stock Gaining Today? originally appeared on Benzinga.com
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