Travis Kelce's Chiefs Among Upset NFL Favorites: DraftKings Scores Big Over Christmas Weekend, Bettors Left Out In The Cold
Portfolio Pulse from Chris Katje
Needham analyst Bernie McTernan maintains a Buy rating and a $50 price target on DraftKings Inc (NASDAQ:DKNG), citing a strong weekend for sportsbooks during NFL Week 16, with only 2 of the top 5 favorites winning outright and none covering the spread. This was likely beneficial for DraftKings' financials. The article also mentions the performance of other companies' sports betting apps, with ESPN Bet from PENN Entertainment (NASDAQ:PENN) initially ranking first but falling to second place behind PrizePicks, while DraftKings ranked third and Flutter Entertainment's FanDuel (OTC:PDYPY) ranked fourth. The article notes the NFL games aired on platforms owned by Comcast Corporation (NASDAQ:CMCSA), Paramount Global (NASDAQ:PARA)(NASDAQ:PARAA), and The Walt Disney Company (NYSE:DIS). DraftKings shares are up 220% year-to-date in 2023.
December 26, 2023 | 8:00 pm
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POSITIVE IMPACT
DraftKings had a favorable weekend as sportsbooks benefited from NFL Week 16 outcomes, with a maintained Buy rating and a $50 price target from Needham analyst Bernie McTernan.
The positive outcomes for sportsbooks during NFL Week 16 suggest a potential increase in revenue for DraftKings, which is reflected in the analyst's maintained Buy rating and high price target. The company's stock performance and market position are likely to be positively impacted in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Flutter Entertainment's FanDuel app, owned by PDYPY, improved its ranking among sports apps from sixth to fourth place.
FanDuel's improvement in app rankings indicates a positive trend for Flutter Entertainment's presence in the sports betting market, which could have a favorable short-term impact on the stock.
CONFIDENCE 70
IMPORTANCE 55
RELEVANCE 60
NEUTRAL IMPACT
Comcast Corporation aired an NFL game exclusively on its streaming platform Peacock, showcasing its involvement in sports broadcasting.
Comcast's airing of an NFL game on Peacock is part of its ongoing sports broadcasting strategy. The short-term impact on the stock is likely neutral as this is consistent with its existing business model.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
The Walt Disney Company aired the San Francisco 49ers vs. Baltimore Ravens NFL game on ABC and Disney+, indicating its strong position in sports media.
Disney's airing of the NFL game on ABC and Disney+ is part of its comprehensive sports broadcasting strategy. The short-term impact on the stock is likely neutral as this is a continuation of Disney's established sports media business.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Paramount Global aired the Kansas City Chiefs vs. Las Vegas Raiders NFL game on CBS, part of its sports broadcasting offerings.
Paramount Global's broadcast of the NFL game on CBS is in line with its role as a media company providing sports content. The short-term impact on the stock is likely neutral as it reflects the company's regular programming schedule.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
PENN Entertainment's ESPN Bet app, which launched in November, initially ranked as the number one overall sports app but fell to second place for the week behind PrizePicks.
While PENN's ESPN Bet app experienced a slight drop in the app rankings, the overall presence and performance in the sports betting market remain strong. The short-term impact on the stock is likely to be neutral as the market has already absorbed the news of the app's initial success.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70