Jim Cramer Says He is Not "Backing Away" From DraftKings

DraftKings Inc. (NASDAQ:DKNG) is one of the stocks Jim Cramer recently talked about. Cramer blessed adding a small position to the stock and recommended waiting for the report to decide on anything further. He said:

“I don’t want to speculate on the outcome here, but you should be aware of the flimsy legality of the prediction market situation before you panic and sell DraftKings down here. After all, there’s a reason why the online sportsbooks haven’t gotten into prediction markets. They’re probably worried that when the regulators finally come down on these platforms, they’ll come down hard. If anything, it might spur some states that are holding out to potentially legalize traditional sportsbooks so they can at least get the tax revenue. If their constituents are already gambling, I mean, really, what’s the harm?

So, where do I come down on all this? Despite today’s rally, DraftKings is still down almost 5% for the year and… it’s down a whopping 28% from last month’s high. I’ve spoke with CEO Jason Robins on multiple occasions and like the direction the company’s headed longer term, which means this could be a buying opportunity. So here’s the bottom line: I’m not backing away from this stock. I think the predictions market fears are overblown here. So if you don’t already own any DraftKings, I’m telling you, you got my blessing right here to put on a small position. Beyond that, let’s suspend judgment until they report at the end of the month.”

DraftKings Inc. (NASDAQ:DKNG) provides online sports betting, fantasy sports, iGaming, and retail sportsbook services.

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