10 Best Leisure and Recreation Services Stocks to Buy Now

6. DraftKings Inc. (NASDAQ:DKNG)

Number of Hedge Fund Holders: 54

Revenue Growth Rate (year-over-year): 63.60%   

One of the Best Leisure Stocks, DraftKings Inc. (NASDAQ:DKNG) was founded in 2012 and is a pioneer in the daily fantasy sports business. Following a Supreme Court decision in 2018 that permitted states to allow online sports betting, the company then ventured into the online sports and casino gaming markets. It rose to prominence in North America’s sports betting and iGaming markets, and it currently shares 70% of its revenue with FanDuel.

Approximately 40% of Canadians can now use DraftKings Inc. (NASDAQ:DKNG)’s online or retail sports betting in 25 states and its iGaming offerings in seven states. The company also runs a commission-based, non-fungible token marketplace and creates and licenses online games.

The Q3 of 2024 results of DraftKings Inc. (NASDAQ:DKNG) show a 39% YoY increase in revenue to $1,095 million, along with a notable increase in customer acquisition. While cutting its Customer Acquisition Cost (CAC) by over 20%, DraftKings increased its online sportsbook and iGaming clientele year over year. In Q3 of 2024, the adjusted gross margin increased by 300 basis points over the previous year to 40%. The firm reaffirmed its $900 million to $1 billion adjusted EBITDA estimate range for fiscal year 2025, with a 31% annual sales growth forecast.

DraftKings Inc. (NASDAQ:DKNG) entered new NBA markets and expanded its same-game parlay offers, resulting in greater engagement and recognition as the best sportsbook app in the United States.

Deutsche Bank upgraded its price objective for DraftKings Inc. (NASDAQ:DKNG) from $33 to $36. In order to account for the shift from 2025 to 2026 as the base year for its assessment, the firm revised its price objective and updated projections for gaming firms.

Paul Marshall And Ian Wace’s Marshall Wace LLP was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns 8.37 million shares worth $328.25 million as of Q3.