Is DraftKings Inc. (DKNG) One of the Top Sin Stocks to Buy?

DraftKings Inc. (NASDAQ:DKNG) is one of the best sin stocks to buy now. On May 20, UBS reiterated a Buy rating on DraftKings Inc. (NASDAQ:DKNG) and a $43 price target. The bullish stance comes on the heels of the company announcing plans to combine its online sports betting revenue with sports prediction market revenue.

Is DraftKings Inc. (DKNG) One of the Top Sin Stocks to Buy?

Courtesy of Draftkings

The changes come as the company expects the prediction market to have negative revenue in 2026, similar to the early days of online sports betting. However, it expects significant improvement with real prediction market revenue coming in 2027. In a bid to expand its presence in the prediction market, the company plans to spend $200 million to $300 million in 2026 on customer acquisition.

Customer acquisition costs are expected to be significantly lower for prediction markets. DraftKings could acquire customers for $200-$300 each and add up to 2 million players. As DraftKings continues to scale, grow revenue, expand profitability, and invest in high-return opportunities, it expects full-year revenue to range from $6.5 billion to $6.9 billion and adjusted EBITDA to range from $700 million to $900 million.

DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that operates online and retail sports betting, daily fantasy sports (DFS) contests, online casinos (iGaming), and digital lottery ticket services. It also runs a prediction markets app and produces sports media content.

While we acknowledge the risk and potential of DKNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DKNG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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