As the stock market gears up for what many believe is the next big rally, investors are on the lookout for promising opportunities to claim their share of the profits. In this article, we explore two top stocks that are well-positioned to benefit from significant trends, potentially driving their revenue and earnings to new heights in the coming years.
DraftKings: Riding the Sports Betting Wave
DraftKings (DKNG) is making waves in the world of sports betting, and for good reason. According to the American Gaming Association, a staggering 73.5 million Americans are planning to place bets on NFL games this season, setting the stage for a substantial market. DraftKings, a leader in this booming industry, stands to profit more than most.
The numbers speak for themselves:
- Monthly paying customers surged by an impressive 44% year over year, reaching 2.1 million in the second quarter.
- Average revenue per payer saw a remarkable 33% year-over-year increase, reaching $137.
- The company’s revenue witnessed an astonishing 88% year-over-year surge, hitting $875 million.
But that’s not all. DraftKings’ mobile sports betting operations are currently active in only 21 states, leaving 29 states and more than half the U.S. population as untapped opportunities for further growth. Moreover, the company has plans to expand into recently authorized markets in states like Kentucky, North Carolina, and Vermont in the coming months. Additionally, a dozen other states are considering legalizing mobile sports betting.
With management projecting full-year revenue growth of up to 58%, reaching $3.5 billion in 2023, and adjusted EBITDA of up to $175 million in the fourth quarter, compared to a prior-year loss of $50 million, DraftKings is positioned for success. Its soaring sales and rapidly improving profitability make it an attractive investment choice.
Palantir Technologies: Unleashing the Power of AI
Artificial intelligence (AI) is at the forefront of technological advancements, promising to reshape industries and the way we live and work. Palantir Technologies (PLTR) is capitalizing on this potential by marrying its esteemed machine-learning capabilities with powerful generative AI models.
With a history of analyzing highly sensitive information while serving the U.S. government as a defense contractor, Palantir has garnered invaluable experience. The U.S. Special Operations Command recently awarded the company a substantial contract worth up to $463 million to enhance its real-time information processing capabilities. CEO Alex Karp also emphasizes the vast market for Palantir’s AI solutions in the corporate world.
Across various sectors, companies are embracing Palantir’s AI platform to drive growth:
- Healthcare leaders like Novartis are partnering with Palantir to accelerate their research and development efforts.
- Engineering firms, such as Jacobs, are leveraging Palantir’s software for planning, design, and supply chain management improvements.
- Energy giants like BP are collaborating with Palantir to reduce production costs by as much as 60%.
Palantir expects its revenue and adjusted operating earnings to grow by 16% and 37%, respectively, in 2023, reaching $2.2 billion and $576 million. These robust gains in sales and profits offer promising returns for investors keen on the data analytics expert’s shares.
Seizing Opportunities in the Upcoming Bull Market
In a market poised for a bullish run, DraftKings and Palantir Technologies are two stocks that merit investors’ attention.
DraftKings’ dominance in the sports betting industry, with substantial growth potential, and Palantir’s promising AI-driven solutions across various sectors make them compelling choices for those seeking to capitalize on the next market rally.
As the market outlook brightens, these stocks may offer a pathway to lucrative returns.
