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DraftKings stock surges amid revenue beat

DraftKings shares are moving higher after an impressive revenue beat for its second quarter.

Video transcript

DAVE BRIGGS: My play is DraftKings. Their stock surging after second quarter earnings. DK's average number of monthly unique paid users actually increased by 30% to 1.5 million in Q2. Their revenue per payer on average was $103, also a 30% increase from the same period last year. The company beat on revenue with $466 million and raised its full-year revenue forecast.

Their CEO, Jason Robins, this morning telling Yahoo Finance, quote, "So far, everything we're seeing is consistent with what has been common knowledge about gaming, that under any macroeconomic conditions, it's a steady cohort of customers." That's an interesting statement, that essentially gambling is recession-proof. Who knew it? Shares, by the way, are up 9 and 1/2%. And football season is just coming. That's why the timing of this matters. Football season started last night, but in earnest in a month. And Massachusetts just legalized. It'll come on next year. Time is on their side, Seana.

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SEANA SMITH: Yeah, Dave, Jason Robins telling Yahoo Finance that he was very excited about the expansion into Massachusetts. That's DraftKings' home turf. It was interesting what he said about the fact that they are not worried about a potential slowdown in the economy. They see no effect from high inflation. I guess it's part of that whole sin stock play, where people are willing to give up almost everything except their guilty pleasures, gambling being one of them.

I find it a little bit tough to believe that they would have no impact if we do see a more significant slowdown in the economy in the coming quarters. But, Dave, you mentioned the fact that they're heading into the NFL season. Obviously, a huge opportunity here for their business. So it looks like at least the next couple of months will probably be good news here for DraftKings.

DAVE BRIGGS: I would have thought gambling was one of the first things you give up. It is for this guy when times are tight.

SEANA SMITH: Addicting to some people.

DAVE BRIGGS: Yeah. Dan Howley, good to have you here, buddy. Have a good weekend.