DraftKings Inc. (NASDAQ: DKNG) has emerged as one of the most prominent players in the booming online sports betting and iGaming industries. As the digital gambling space expands in size and legitimacy, investors are left wondering: Does DraftKings have what it takes to become one of the top growth stocks of the next decade?
With a market cap of $16.64 billion, a five-year beta of 2.15, and a recent stock price hovering around $33, DraftKings is at the intersection of sports, tech, and entertainment. It’s a company that reflects both volatility and potential. Over the past six months, the stock has been down 9.7%, but that only tells part of the story. A broader look reveals aggressive expansion, increased market penetration, and an ambitious roadmap that positions the company for long-term upside.
The stock’s 52-week range—$28.69 to $53.61—shows the volatility common in high-growth sectors. After peaking above $50 in February 2025, DKNG has recently consolidated around the low-to-mid $30s. This dip could present a strategic entry point for investors with a longer time horizon.
Betting on the Future: Market Trends and Momentum
DraftKings operates in an industry that is currently transforming. The legalization of online sports betting in more than 30 U.S. states and growing global interest have helped accelerate demand. The total addressable market (TAM) is massive. By some projections, the U.S. sports betting market alone could reach over $60 billion annually by the end of the decade. That doesn’t include international expansion or complementary verticals like daily fantasy sports, iGaming, and online casino platforms.
What sets DraftKings apart is its brand recognition and first-mover advantage. As one of the first to scale rapidly following U.S. legalization in 2018, it established key partnerships with major sports leagues, media companies, and teams. In the age of fan engagement and real-time interactivity, that network effect matters more than ever.
Just as importantly, DraftKings has invested heavily in its product experience. Its mobile app is sleek, data-rich, and sticky, keeping users engaged beyond just game-day bets. A major part of that stickiness is its promotional strategy. DraftKings provides a bonus to new users in the form of risk-free bets or deposit matches, helping to attract customers in a fiercely competitive space. These kinds of offers don’t just acquire users—they create habits. And as the market matures, it’s those habits that will separate profitable companies from the rest.
Financial Performance and Investor Sentiment
At the time of writing, DraftKings trades at around $33.29, just above its recent lows. The company’s earnings per share (EPS) remain negative at -1.05, and there is currently no price-to-earnings (P/E) ratio listed. This isn’t uncommon for high-growth firms reinvesting heavily into their infrastructure, marketing, and market expansion.
The company’s average volume sits at 11.8 million shares, with a daily volume of 6.4 million, indicating healthy liquidity. The relatively high beta (2.15) suggests that the stock is more volatile than the broader market, again, typical of a growth-oriented, tech-style equity in an emerging industry.
Looking ahead, DraftKings has an earnings report scheduled for May 8, 2025. Investors will be watching closely for updates on revenue growth, user acquisition costs, profitability timelines, and geographic expansion. If the company hits or beats expectations, that could spark renewed upward momentum.
Wall Street remains cautiously optimistic. Analysts have placed a one-year target estimate as high as $54.14, suggesting a potential 60% upside from current levels. That’s significant, but it comes with caveats. For long-term investors, short-term price movements should matter less than the structural trajectory of the business.
DraftKings as a Tech-Driven Consumer Brand
It’s tempting to view DraftKings purely through the lens of gambling or entertainment, but that overlooks its identity as a tech-first company. Its platform runs on data, AI, and rapid iteration. The app personalizes promotions, tracks player behavior, and integrates real-time statistics for a seamless betting experience. It’s a software company disguised as a sportsbook.
That matters in today’s landscape. As more states legalize betting, competition will grow—but so will opportunities to create smarter, more tailored user journeys. DraftKings is already using predictive analytics to shape its odds, pricing, and promotional offers. It’s building a moat around its platform that’s based not just on brand, but on functionality.
The company is also exploring adjacent technologies—NFTs, digital collectibles, in-app games, and integrations with fantasy sports leagues—that could increase user engagement and average revenue per user (ARPU). In a world where attention is the most valuable currency, these strategies aim to keep DraftKings front and center on users’ screens.
Risks and Roadblocks
No investment is without risk, and DraftKings has a few that investors should note. The path to profitability is still ongoing. With a negative EPS and no P/E ratio currently listed, the company is clearly in growth mode, prioritizing expansion over margins. If economic conditions tighten or investor sentiment turns against non-profitable growth stocks, DKNG could be pressured.
There’s also the competitive landscape. Rivals like FanDuel (owned by Flutter Entertainment), BetMGM, and Caesars Sportsbook are investing heavily in customer acquisition. While DraftKings enjoys strong brand equity, market saturation and promotional fatigue are real concerns. Regulatory changes, particularly at the state level, could also introduce new hurdles.
Finally, valuation remains a hot topic. While the current price might seem attractive compared to recent highs, investors must consider how much future success is already priced in. DraftKings has ambitious revenue targets, but will need to deliver consistently to justify them.
So, Is It a Top Growth Stock?
If you’re a long-term investor with an appetite for volatility and a belief in the future of digital sports entertainment, DraftKings has many characteristics of a top growth stock.
It’s operating in a secular growth industry. It has a loyal, expanding user base. It’s investing in its own technology. It’s building partnerships with media giants and leagues. And despite recent price drops, its fundamentals remain intact.
What matters most over the next decade is execution. Can DraftKings balance growth with profitability? Can it continue to innovate faster than its competitors? Can it expand into international markets, or introduce new revenue streams like in-app microbetting, social features, or AI-driven personalization?
The answer isn’t guaranteed. But the blueprint is there. And for investors willing to ride the highs and lows of a disruptive, high-upside stock, DraftKings could be a compelling addition to a growth portfolio.
Bottom Line
DraftKings is not your traditional value stock. It doesn’t offer a dividend, it doesn’t post consistent profits, and it’s more volatile than the average ticker. But it is a category leader in one of the fastest-growing sectors in modern consumer tech.
The current dip in price may offer an attractive entry point, especially for those looking beyond 2025. The key is to treat DraftKings not just as a betting company, but as a platform. One with network effects, brand power, and the technological muscle to evolve with the industry.
The next decade could be pivotal for DraftKings. If it continues to grow, expand its margins, and capitalize on the ongoing legalization wave, it may not just be a growth stock—it may be a leader in reshaping how the world watches, engages with, and wagers on sports.
