Today's video focuses on stock price action, valuation metrics, and recent news affecting DraftKings (DKNG 0.65%) and Sofi (SOFI 4.20%). Here are some highlights from the video.
- The main reason that stock prices jumped for DraftKings and Sofi was recent bullish analysts' price targets. On Oct. 11, reports appeared that analysts at Morgan Stanley initiated coverage of Sofi with a $25 price target. On the same day, reports emerged that analysts at Citigroup initiated coverage of DraftKings with a $66 price target.
- Sofi received another bullish analyst price target on Sept. 22, when reports appeared that analysts at Jefferies initiated coverage of Sofi with a similar price target of $25. Some of the bullish points investors are making with Sofi deal with Sofi's potential of receiving a bank charter in the near future and interest rates coming back on student loans in January.
- DraftKings announced on Oct. 10 that its latest office location would be based out of Las Vegas and should be in use by early 2022. The Las Vegas office will be DraftKings' second-largest office. DraftKings has been growing at solid levels and expanding into new markets such as NFTs and iGaming. Investors could see this expansion as further evidence of DraftKings' continued growth in North America.
Click the video below for my full thoughts and analysis.
*Stock prices used were the premarket prices of Oct. 12, 2021. The video was published on Oct. 12, 2021.
