DraftKings jumps 15% as US gambling stocks rally on June retail report

main__photo

US-listed gambling stocks soared on Friday after a new retail report showed stronger than expected sales performance for the month of June.

According to the report published by the US Census Bureau, retail sales increased by 1% month-on-month in June.

The rise came in ahead of consensus forecasts at 0.8% and marked a major improvement on the 0.1% fall recorded in May.

The report provided a confidence boost for investors and an uplift in market sentiment.

It showed that consumers spent more on a wide range of goods in June, including on food and gas, despite inflation hitting a new four-decade high only recently.

This rise was primarily driven by gas stations amid rising fuel prices, with sales up 3.6% on the prior month. Excluding gas stations, US retail sales still rose by 0.7% in June.

The Dow Jones Industrial Average climbed over 600 points, or 2.2% as a result, while the S&P 500 and Nasdaq Composite rose by 1.9% and 1.8% respectively.

DraftKings led the charge for US-listed gambling stocks, rocketing 14.6% between market open and market close on Friday 15 July to end up at $12.86 per share.

This resulted in a one-week uptick of 12.5% for the Boston-based sports betting operator, which shareholders will be hoping represents a turnaround for the beleaguered stock. Shares in DraftKings are still down 80.1% from their 52-week high of $64.58.

Rush Street Interactive also surfed the wave with an 8.8% daily rise, while Penn National Gaming (7.7%) and Caesars Entertainment (6.4%) also reaped the benefits.

About the author

photo
Jake Evans

Jake Evans is an NCTJ-accredited journalist and editor who has covered the online gaming and sports betting industry since 2017. He is the managing editor of iGaming NEXT and has previously worked in both content and data for EGR, Stats Perform and Football Radar.

Related Stories