Benchmark Highlights DraftKings' (DKNG) Growth Amid Bettor-Friendly NFL Outcomes

DraftKings Inc. (NASDAQ:DKNG) ranks among the best fast growth stocks to buy now. On September 15, Benchmark reaffirmed its Buy rating and $53 price target for DraftKings Inc. (NASDAQ:DKNG) following the company’s NFL Week 1 results in New York, which exhibited significant handle growth.

The firm highlighted that substantial margin compression across the market was caused by bettor-friendly NFL outcomes such as favorites covering and overs hitting, as well as excellent results on popular props and parlays.

Although the NFL kickoff’s intense promotion increased handling, it had had an adverse effect on profitability. According to Benchmark, DraftKings Inc. (NASDAQ:DKNG) mainly relied on promotions to increase volume and engagement. Although this marketing approach helped DraftKings surpass the market in terms of growth, it ultimately resulted in a decrease in its net revenue margin.

DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that offers sports betting, digital lottery courier, daily fantasy sports, and other products. Additionally, it offers online casino games, including roulette, slot machines, blackjack, and baccarat.

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Disclosure: None. This article is originally published at Insider Monkey.