DraftKings is one of the largest legal sports betting and fantasy gaming providers in the United States and the brand can be frequently seen on the list of the best Virginia betting apps. The company started as a fantasy gaming outlet and has overgrown. DraftKings stock has varied over the years since the company went public.
However, Morgan Stanley is still very optimistic about DraftKings. The company is the top iGaming stock at Morgan Stanley. This alone is a big prop for the company with all the products coming into the industry.
Bullish Stock
There are lots of trends in financial markets that resemble sports betting. A bullish stock is what Morgan Stanley has called DraftKings. This means the stock moves on an upward trend consistently. This characterizes high investor confidence, which should help the stock rise.
Some issues with DraftKings in the past have caused the stock to flutter. When CEO Jason Robbins stated DraftKings does not want to cater to bettors who are betting on sports to make substantial profits, the stock collapsed.
This was a terrible look for the company, but the app is superior to many books in the industry. Bettors have no choice but to utilize the app to access many betting markets unavailable on other legal books.
Many financial analysts believe the betting industry is too saturated to make money. If it was consolidated, it would make for more substantial investment portfolios. However, this is not the case, according to Morgan Stanley.
DraftKings holds such a significant market share that it’s an excellent iGaming investment. It has been called reassuring by many analysts who previously stayed away from betting platform stocks.
Short Losses but Long-Term Gains
DraftKings’ performance in the market is similar to a winning sports bettor. It’s impossible to win every bet in sports betting, but the goal is to succeed in the long run. DraftKings has been making long-term gains, but the short-term losses have swayed analysts.
Although, the long-term portfolio of DraftKings has been fantastic. According to Morgan Stanley analyst Thomas Allen, this performance is expected to continue. He preaches for DraftKings stock and believes it provides significant value to his customers.
He said, “We expect the US online sports betting/iGaming market to be huge, with a few market share winners, including DKNG.”
Some people have been concerned about DraftKings, but Allen believes it will continue to rise steadily over the years. Additionally, there is a belief in the iGaming industry that DraftKings will continue to make money by consuming more consumers.
Legal sports betting is growing rapidly, and DraftKings is at the forefront of the movement. This will allow them to continue to generate revenue and stock to rise. Robbins is also adjusting the product to appeal to solely casual bettors. This will help the company profitability and send the sharps to other platforms.
Sharps are professional bettors that can often hurt profitability. The area where DraftKings wants to lose money upfront is through marketing because it helps with customer acquisition. This will help DraftKings make money in the long run.
The company’s strategy in this area makes them an outstanding stock to invest in because it creates profits.
Allen stated, “Public international stocks show that sports betting/iGaming is a profitable business, while past precedents show that stocks that can transition from revenue to profit stories deliver significant upside.”
As DraftKings continues to grow, the stock’s future is very bright. Keep an eye on the stock in the coming years. It could set a precedent in the iGaming space.