What Is Going On With DraftKings Stock On Tuesday?

DraftKings Inc. (NASDAQ:DKNG) shares are gaining ground on Tuesday, following a bullish stance from analysts.

Mizuho Lifts Price Forecast

Mizuho maintained an outperform rating on DraftKings on Tuesday. The firm raised its price forecast from $44 to $45. This update follows a wave of analyst activity on Monday.

Guggenheim's Vamil Divan maintained a Buy but lowered his price forecast to $35. Meanwhile, Barclays raised its price forecast to $35.

Q1 Earnings Double Beat

The positive sentiment stems from the May 7 earnings report. DraftKings reported adjusted earnings of 20 cents per share, which crushed the consensus estimate of 2 cents per share. Revenue hit $1.646 billion, edging out the expected $1.644 billion.

CEO Jason Robins credited customer engagement for the growth. "We are off to a fantastic start to the year," Robins stated. Average revenue per monthly unique payer rose 21% year-over-year to $131.

Expanding Market Footprint

DraftKings now operates mobile sports betting in 27 states and offers iGaming in five states. This reach covers roughly 53% of the U.S. population.

DraftKings Technical Levels To Watch

From a trend perspective, DraftKings is still trying to repair longer-term damage: it's trading 22.8% below its 200-day SMA of $32.57 and 6.3% below its 100-day SMA of $26.85.

That said, the stock is now back above its shorter-term baselines—about 7% above the 20-day SMA ($23.51) and 6.5% above the 50-day SMA of $23.62.

• Key Resistance: $26.50
• Key Support: $21

DKNG Price Action: DraftKings shares were up 1.86% at $24.96 at the time of publication on Tuesday, according to Benzinga Pro data.

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