Keep an eye on DraftKings (DKNG).
This morning, analysts at Truist upgraded the DKNG stock, noting it has a clear path to profitability. Wells Fargo also upgraded the stock to overweight, with a price target of $37 a share, noting, ““We learned a lot last week: DKNG is capturing share, capitalizing on an improved product, and limiting opex growth […] EBITDA is inflecting more quickly/steeply than we previously envisioned, and we expect its op. momentum to continue.”
Even better, the company’s second quarter was impressive. In fact, it was the first quarter where DKNG turned a profit. Instead of posting a 14-cent loss as expected by the Street, it turned in a profit of 14 cents.