DraftKings Stock (NASDAQ: DKNG) Down PreMarket Despite Macquarie Optimism

DraftKings stock price (NASDAQ: DKNG) had gained solidly in yesterday's session, adding 1.38%, before making an about turn in this morning's pre-market. With DKNG currently in the red to the tune of 1.94%, the stock is hovering around the mid point of it's 52 week range.

Finance giant Macquarie has been bullish on the prospects of Draftkings and the online betting sector, with plenty of interesting notes to be taken from their report. As markets continue to exhibit volatility, investors and analysts alike are paying special attention to sectors with robust growth potential, and the online betting industry, led by key players like DraftKings, is no exception.

According to Macquarie, the sports betting market is showing signs of healthy growth, although the NFL market hold—a measure of the amount kept by sportsbooks after all bets are settled—was calculated at 7% for the week of September 2-8, slightly below the long-term average of 9%. The overall sports betting market hold for the same week sat at 8%, assuming a 9% hold for sports other than NFL.

In the state of New York, sports betting hold was reported at 8% for the week of August 26 – September 1, which included the beginning of college football season. This figure represents a significant 28% year-over-year growth for the same week of the previous year and is perceived as a positive indicator for the NFL season.

Macquarie utilizes these data points to suggest that the Q3 hold is on track to match last year's at approximately 9.7%. Considered together, these statistics shape a favorable backdrop as Macquarie singles out DraftKings as a top pick for investors looking toward the online sector this fall.

DraftKings is digital sports entertainment and gaming company renowned for its online sports betting and casino services. Hailing from Boston, Massachusetts, the company has stamped its presence in the industry as a go-to marketplace not just for betting but also for a burgeoning digital collectibles ecosystem.

Currently, DraftKings boasts a market cap of approximately $17.77 billion, showcasing the scale of its position within the Gambling industry and Consumer Cyclical sector. Analysts' price targets as you can see from below are broadly bullish when it comes to DKNG, and the potential upside should the consensus be reached would be more than 30% from the current price action.

Macquarie's endorsement of DraftKings as a top pick solidifies the firm's position as a potential strong performer in the online betting space for the upcoming season and may be a name to watch for those seeking opportunities in the Consumer Cyclical sector. As the digital and entertainment landscapes continue to merge, companies like DraftKings aim to be at the crossroads of innovation and profit.