DraftKings (DKNG) Stock Soars on Strong Q4 Results and Upgrade

DraftKings (DKNG) stock is on a tear today, surging nearly 7% in Wednesday morning action. The online-gambling giant's shares have been on a roll this year, up a staggering 171% so far, and today's gains add to that impressive performance. So, what's driving this stock price rocket? Let's dive in and find out.

First and foremost, DraftKings reported strong fourth-quarter and fiscal year 2024 results. The company's revenue increased by 13% year-over-year to $1.39 billion in Q4 2024, driven by continued healthy customer engagement, efficient customer acquisition, expansion into new jurisdictions, higher structural sportsbook hold percentage, and the impact of the Jackpocket acquisition. This growth, coupled with the company's first full year of positive Adjusted EBITDA, has investors bullish on DraftKings' prospects.