Shares of DraftKings (NASDAQ:DKNG) are rising Wednesday after the sports betting company announced a significant expansion and acquisition.
- DKNG is showing upward movement. Check the market position here.
What To Know: DraftKings said it acquired Railbird Technologies Inc and its wholly owned subsidiary, Railbird Exchange, LLC. The acquisition supports DraftKings's broader strategy to enter prediction markets, expanding its addressable opportunity through regulated event contracts.
DraftKings’s stock jumped more than 5% following the news, according to Benzinga Pro.
DraftKings said it chose Railbird Technologies because its team and proprietary technology establish a strategic foundation for future growth in the prediction market space, enabling advantaged economics and long-term product differentiation.
"This is a transformational moment for our company, and we are thrilled to be a part of the future of DraftKings," said Miles Saffran, CEO of Railbird. "DraftKings' scale and leadership in the industry creates meaningful opportunities for our team and platform."
The company also confirmed plans to launch DraftKings Predictions, a mobile application that will allow customers to trade regulated event contracts on real-world outcomes across finance, culture and entertainment. The product will have the flexibility to connect to multiple exchanges. DraftKings Predictions is set to debut in the coming months.
"We are excited about the additional opportunity that prediction markets could represent for our business," said Jason Robins, CEO of DraftKings. "We believe that Railbird's team and platform—combined with DraftKings' scale, trusted brand, and proven expertise in mobile-first products—positions us to win in this incremental space."
DKNG Analysis: DraftKings is trading approximately 17.2% below its 50-day moving average of $41.71 and about 13.7% below its 200-day moving average of $40.02. This positioning suggests that the stock has been under pressure, and the recent uptick may not yet signify a reversal in trend.
In the context of the broader market, DraftKings holds a market capitalization of $16.68 billion, making it one of the larger players in the gaming and sports betting sector. This positioning may provide some resilience compared to smaller competitors like Penn National Gaming and Caesars Entertainment, which have market caps of $2.49 billion and $4.62 billion, respectively.
DKNG Price Action: DraftKings shares were up 2.08% at $34.32 at the time of publication on Wednesday, trading within its 52-week range of $29.64 to $53.61, according to Benzinga Pro.
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