Home / Business and Economy / Cramer Bullish on DraftKings, Sees Further Upside Ahead
Cramer Bullish on DraftKings, Sees Further Upside Ahead
10 Sep
Summary
- Jim Cramer recommends adding to DraftKings position
- DraftKings reports impressive Q2 results, raises guidance
- Cramer calls DraftKings "best in show" in the industry
According to the article, DraftKings Inc. (NASDAQ:DKNG) is one of the stocks on Jim Cramer's radar. A caller asked if it was a good time to add to their position in the stock, and Cramer remarked that the answer is yes. He believes DraftKings is the "best in show" in the industry and that the stock could have further upside, having already gained 25%.
In an August episode, Cramer discussed DraftKings' recent earnings and forecast. He said that as the company approaches the football season, things are already looking "pretty darn good" for DraftKings, one of the nation's largest online sportsbooks. Cramer has been "steadfastly bull" on the stock, and the company's Q2 results were impressive, with revenue growth accelerating to 37%, better-than-expected earnings, and higher-than-expected earnings before interest, taxes, depreciation, and amortization. These results were driven by what DraftKings calls "sportsbook-friendly outcomes" in the quarter, and the company only reiterated its full-year forecast, but management said it now expects to see revenue near the high end of its guidance range. This was good enough to send the stock flying in after-hours trading.
While the article acknowledges the potential of DraftKings as an investment, it suggests that certain AI stocks may offer greater upside potential and carry less downside risk.
