What's Going On With DraftKings Stock Friday?

DraftKings Inc DKNG stock is trading higher Friday after Oppenheimer analyst Jed Kelly maintained an Outperform rating and raised its price target from $30 to $36.

The digital sports entertainment and gaming company's NY handle share surpassed FanDuel (FD) for the first time since OSB launch in January 2022, with DKNG's handle reaching $131 million during the first whole week of June vs. FD's $105 million, beating FD's share by 9%, the analyst noted.

The company maintains this share outperform in subsequent weeks, improving DKNG's stake to 47% (+14% vs. FD), Kelly highlighted.

DKNG's superior Major League Baseball (MLB) product offers features like nightly profit boosts, up two runs early ML wins, more same-game parlay (SGP) markets, and better uptime for live betting relative to peers after MLB introduced the pitch clock.

Kelly noted that DraftKings and FD dominate market share in new OSB states, accounting for 70-80% and 75-85% of Handle and Gross gaming revenue (GGR) in each market during April and May.

DKNG's handle/GGR in its home state of Massachusetts is at 50%, benefiting from a built-in advantage as the exclusive OSB provider in neighboring New Hampshire since December 2019.

DKNG's iGaming states are accelerating, with NJ iGaming still growing at 13% in its 8th year and DKNG's skin increasing by 25% this year.

DraftKings expects favorable legislation outcomes in either IA/IL/NY over the next 18 months, aiming to achieve profitability quickly in newly legalized states.

DKNG's overall market share has grown by 255bps in OSB, primarily due to 410bps share gains in handle capture and improving holds.

DKNG's GGR yield continues to trend higher, benefiting from structural improvements in SGP functionality and merchandising, trading/optimization, and expanded betting markets.

Promotional intensity for DKNG and the industry has been trending down over the last three months.

Price Action: DKNG shares traded higher by 6.19% at $26.79 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.