DraftKings Raises Price Target Amid Strong US Gaming Growth

DraftKings (DKNG) is experiencing a mixed but generally positive outlook as it approaches its Q2 2025 earnings release. The company is expected to report a significant year-over-year EPS increase of over 240% and revenue growth of approximately 28%, despite recent downward revisions in profit forecasts reflecting sector-wide challenges. Analysts remain optimistic about DraftKings' growth potential, highlighted by a recent price target raise to $60, implying a 37% upside from current prices, supported by stronger-than-expected performance and new market expansions such as the Jackpocket acquisition. Trading volumes have recently declined, reflecting a drop in short-term liquidity interest, but momentum-driven strategies focusing on high-liquidity stocks like DraftKings have historically outperformed benchmarks. Insider buying activity, including a substantial purchase by the COO, signals confidence in the company's future prospects amid a competitive online sports betting and iGaming market where DraftKings holds a leading US market share. Meanwhile, AI-related energy demands are creating infrastructure investment opportunities outside of direct AI firms, underscoring the broader technological and market shifts impacting energy and tech sectors.