The sports betting name surprised Wall Street with better-than-expected Q2 results
Sports gambling stock DraftKings Inc (NASDAQ:DKNG) is 8.7% higher to trade at $32.48 at last check, earlier hitting $34.49, its highest level since November 2021. The company reported adjusted earnings of 14 cents per share on roughly $875 million revenue, easily topping the forecasted mean loss of 25 cents on $763 million in revenue. DraftKings also hiked its full-year revenue forecast.
Today's options pits are rife with activity. At last check, 39,000 calls and 21,000 puts have crossed the tape, volume that's six times the intraday average amount. Most popular is the weekly 8/4 32-strike put, where new positions are being opened, followed closely by the 35-strike call in the same series.
The results have emboldened analysts, with at least three raising their price targets, the highest coming from Canaccord Genuity to $42 from $38. There's still room for upgrades, too, with eight of 25 covering brokerages maintaining a "hold" or worse rating.
DraftKings stock is lapping the SPDR S&P 500 ETF Trust (SPY) at this point, with a 186.2% year-to-date lead. Prior to today's breakout, the shares were mired in a four-day skid that found support at its 30-day moving average. DKNG is now on track to log its seventh consecutive weekly win.