10 Best Video Game Stocks to Buy Now

4. DraftKings Inc. (NASDAQ:DKNG)

Number of Hedge Fund Holders: 65

DraftKings Inc. (NASDAQ:DKNG) is a gaming and digital sports entertainment company that provides online sports betting, online casinos, retail sportsbook, and other consumer product offerings. It operates through the Business-to-Consumer (B2C) and Business-to-Business (B2B). The Business-to-Consumer segment encompasses sportsbook, iGaming, and DFS product offerings, and media and other consumer product offerings, while the Business-to-Business segment covers the design and development of gaming software.

The company’s business is demonstrating strong operating leverage. Its fiscal Q4 2024 earnings reported a 30% year-over-year revenue growth to $4.8 billion. Its adjusted EBITDA improved $332 million year-over-year to $181 million, and free cash flow was positive for the first time in its history. DraftKings Inc. (NASDAQ:DKNG) also acquired 3.5 million new customers at record low customer acquisition costs and grew its total customer base to $10.1 million, reflecting a 42% year-over-year growth.

In 2025, DraftKings Inc. (NASDAQ:DKNG) plans to focus on acquisitions and improve live betting experience through acquisitions like Simplebet and Sports IQ Analytics. Its 2025 guidance points to another strong year with a 35% revenue growth at the midpoint.