Billionaire Steve Cohen’s 10 Mid-Cap Stock Picks with Huge Upside Potential

Page 9 of 9

1. DraftKings Inc. (NASDAQ:DKNG)

Upside Potential: 57.84%

Market Cap: $17.12 billion

DraftKings Inc.(NASDAQ:DKNG) operates as a global digital sports entertainment and gaming company. DKNG provides online sports betting, along with iGaming, or online casino products, and also engages in the design and development of sports betting and casino gaming software.

In its earnings report for the final quarter of 2024, DraftKings Inc.(NASDAQ:DKNG) announced revenue of $1.39 billion. This amount, while marking a 13.5% year-on-year (YoY) increase, fell short of analysts’ forecasts by $1.31 million.

Despite this, there were significant positives. DraftKings Inc.(NASDAQ:DKNG)’s client base grew by an impressive 42.25% YoY, driven by a substantial spike in customer acquisition on Super Bowl Sunday. On this day, DKNG’s app became the #1 most downloaded app, highlighting its popularity during the biggest betting event of the year. Reflecting this optimism, 63% of Wall Street analysts recommend a “Strong Buy” for the company’s stock, projecting an upside of 57.84%. Point72 Asset Management owned more than 5.3 million shares in DKNG, representing 0.43% of the fund’s portfolio. It is currently valued at $199.4 million. The fund increased its position in the company by 80% during the quarter.

Overall, DraftKings Inc.(NASDAQ:DKNG) ranks first on our list of Steve Cohen’s 10 mid-cap stocks with huge upside potential. While we acknowledge the potential of DKNG, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DKNG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9