10 Robinhood Stocks with High Potential

8. DraftKings Inc. (NASDAQ:DKNG)

Number of Hedge Fund Holders: 72

Stock Upside Potential: 37.49%

DraftKings Inc. (NASDAQ:DKNG) is one of the top Robinhood stocks with high potential. On March 17, Argus downgraded DraftKings Inc. (NASDAQ:DKNG) to a Hold from a Buy. The downgrade came amid concerns that the company is facing elevated customer acquisition costs amid heightened competitive pressure.

The research firm has also warned that the company appears to be losing market share in the iGaming market in the US due to aggressive competition. Consequently, the research firm has lowered its earnings estimate of the company to $1.20 a share from $2.30 a share. It also expects the company to achieve $1.90 earnings per share in 2027.

Amid concerns, DraftKings is investing heavily in prediction markets as it seeks to strengthen its competitive edge. It’s also spending big on customer acquisition, setting the stage for long-term growth.

Earlier on March 3, Benchmark reiterated a Buy rating and a $29 price target on DraftKings, asserting confidence in its growth path and competitive position. The positive stance is also in response to improving monetization across platforms.

DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that provides legal online sports betting, Daily Fantasy Sports (DFS), and iGaming through its mobile apps and website. It offers a “super app” that consolidates sports betting, casino games, and lottery products to engage users, primarily driving revenue through sports betting.