DraftKings Inc. (DKNG) has entered into a partnership with FaZe Clan, a digital-native lifestyle and media platform. With this deal, DraftKings has become the Official Sports Betting, iGaming, Daily Fantasy and Free-to-Play Partner of the platform.
Also, DraftKings will have access to upcoming FaZe Clan events as well as a variety of digital and social media content. The companies also disclosed plans to work together in developing educational content in order to increase awareness for responsible gaming.
The agreement will also bolster DraftKings’ presence in esports, becoming the official sponsor of FaZe Clan’s Counter-Strike esports team. Its logo will be placed on team jerseys and player official channels as well as content. (See DraftKings stock chart on TipRanks)
The Co-founder and President of DraftKings in North America region, Matt Kalish, said, “The strong crossover between DraftKings customers and FaZe’s tens of millions of viewers and followers made this a natural alliance, and we hope to create excitement, competition, and community around sports and video games for adult audiences everywhere we operate.”
On November 16, Susquehanna analyst Joseph Stauff maintained a Buy rating on DraftKings and lowered the price target to $65 from $75. The new price target implies 71.6% upside potential.
Meanwhile, the rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 10 Buys, 5 Holds, and 1 Sell. The average DraftKings price target of $64.36 implies 70% upside potential to current levels.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into DraftKings’ performance.
According to the tool, compared to the previous year, the DraftKings’ website recorded a 41.3% monthly increase in global unique visits in October. Similarly, the website traffic has increased 91.3% year-to-date against the same period last year.