DraftKings (DKNG), a leader in sports betting, has strong potential as it is gaining market share across the country. The stock has witnessed a long correction and started rising from lows of $11 witnessed during January 2023. The company has showcased positive performance and the stock has given impressive returns to long term investors. The stock has displayed strong upward momentum, reflecting positive market sentiment. Over the past year, DraftKings has fluctuated between a 52-week high of $49.57 and a low of $25.74. This report analyzes the stock's current performance, technical indicators, and key analyst ratings.

Yearly Highs and Lows

DraftKings has experienced notable price swings throughout the past 12 months. The stock reached its 52-week high of $49.57 and a low of $17.42 earlier in the year. This volatility reflects both the regulatory changes in the gaming industry and the company's efforts to expand its market share. Currently trading near its yearly high, DraftKings shows promising upward momentum.

Price-to-Earnings Ratio and Profitability

DraftKings’ current price-to-earnings (P/E) ratio remains negative due to the company’s ongoing losses, with an earnings-per-share (EPS) of -$1.73 for the trailing twelve months. While the company has not yet achieved profitability, analysts expect this to change in the near term as DraftKings continues to scale its operations and capitalize on the growing sports betting market. Investors remain optimistic about future earnings potential as the sector expands.

Analyst Ratings and Target Prices

DraftKings continues to receive positive ratings from several analysts. On May 6, 2024, BMO Capital Markets and BTIG Research both reaffirmed their "Buy" ratings, setting a price target of $54. Similarly, Susquehanna Financial Group raised its target to $58 in late April, highlighting confidence in the company’s potential for sustained revenue growth. These ratings reflect broad consensus on DraftKings' ability to generate long-term returns for investors.

Fibonacci Levels and Volume

DraftKings' Fibonacci retracement levels are key technical indicators, with significant levels at $40.50, $44.50, and the 52-week high of $49.57 acting as potential support and resistance points. Traders closely monitor these levels to make informed buy or sell decisions. The stock’s highest trading volume in 2024 occurred on April 24, with over 20 million shares traded, signaling a surge in market interest following significant corporate announcements and industry developments.

Widespread DraftKings Sportsbook Outage

On Thursday, DraftKings experienced a significant outage affecting its sportsbook platform across all jurisdictions. From early morning until approximately 2 p.m. ET, users attempting to place bets or access their accounts were met with error messages, unable to engage with the platform. The widespread nature of the disruption left bettors unable to participate in critical sporting events.

Error Message Frustrates Users

For several hours, users of DraftKings’ sportsbook were greeted with an error message upon logging in, preventing them from placing wagers or managing their accounts. The outage spanned across multiple jurisdictions, causing significant frustration among bettors who were eager to place bets on a day filled with high-profile sports action.

DraftKings Acknowledges Issue

DraftKings responded swiftly to the technical issues by posting a banner in their app, informing users of the problem. The operator's customer support team tweeted at 8:29 a.m. ET, acknowledging that players across all regions were affected and that the company was working urgently to resolve the problem.

Impact on Major Sporting Events

The outage occurred on a day packed with major sporting events, including two American League Championship Series (ALCS) games in MLB, the WNBA Finals, an NFL Thursday Night Football game between the San Francisco 49ers and Seattle Seahawks, NHL matchups, and college football games. The timing exacerbated user frustration, as bettors were unable to place wagers on key events.

Users Vent on Social Media

With the outage preventing access, many DraftKings users took to social media, particularly X (formerly Twitter), to express their dissatisfaction. Several users voiced their intent to switch to competing sportsbook platforms due to the inability to place bets in real time. The frustration was heightened by the importance of the day’s sporting schedule.

Conclusion

DraftKings remains an attractive stock for investors seeking exposure to the fast-growing sports betting market. While the company is still working towards profitability, strong brand recognition and favorable regulatory trends position it well for future growth. Currently trading near its yearly high, DraftKings offers potential for appreciation, although investors should carefully consider the risks associated with the company’s ongoing losses and market volatility.