Why Is DraftKings Stock Surging Monday?

DraftKings Inc. (NASDAQ:DKNG) stock is up about 8% on Monday after Bank of America upgraded it to Buy from Neutral.The Nasdaq is up 0.49%, while the S&P 500 has gained 0.44%.Bank of America Upgrade Fuels DraftKings RallyDraftKings shares jumped after Bank of America analyst Julie Hoover upgraded the stock to Buy from Neutral, CNBC reported.Hoover described prediction markets as a “win-win” opportunity for DraftKings. She expects the business could generate about $400 million in fees in 2027. She also sees between $200 million and $400 million in potential market-making revenue.The upgrade comes as DraftKings trades near the lower end of its 52-week range following a prolonged selloff.Broader market breadth is also positive Monday. Ten of the 11 major sectors are trading higher.Technical AnalysisDespite Monday’s rally, DraftKings remains below its major moving averages.The stock is trading about 8.4% below its 20-day simple moving average of $22.01. It is also roughly 21.4% below its 200-day simple moving average of $25.65.The 20-day average remains below the 50-day average. Meanwhile, the 50-day average remains below the 200-day average. That bearish “death cross” formed in October 2025.The moving average convergence divergence, or MACD, is also below its signal line. Its histogram remains negative. That suggests momentum remains weak despite Monday’s rebound. Key Resistance: $22.01, near the 20-day moving average Key Support: $18.52, near the stock’s 52-week low See More: Top Value Stocks Earnings And Analyst OutlookDraftKings’ next major scheduled catalyst is its estimated Nov. 5, 2026, earnings report. EPS Estimate: Loss of 33 cents, compared with a loss of 26 cents a year earlier Revenue Estimate: $1.41 billion, up from $1.14 billion a year earlier The stock carries a Buy consensus rating with an average price forecast of $33.77. Recent analyst actions include: BTIG: Buy, price forecast lowered to $25 on Oct. 1 Citizens: Market Outperform, price forecast lowered to $35 on Sept. 24 UBS: Buy, price forecast lowered to $48 on Sept. 18 Benzinga Edge RankingsThe Benzinga Edge scorecard highlights DraftKings’ strengths and weaknesses compared with the broader market. Momentum: Weak, with a score of 5.23 Despite Monday’s jump, DraftKings continues to trade well below key moving averages. The stock would need to reclaim important technical levels, starting with its 20-day average, to strengthen its broader momentum outlook.Top ETF Exposure Corgi Sports Betting & Gambling ETF (NASDAQ:ODDZ): 5.57% weight Roundhill Sports Betting & iGaming ETF (NYSE:BETZ): 6.28% weight VanEck Gaming ETF (NASDAQ:BJK): 6.44% weight Significance: DraftKings has meaningful exposure across these funds. Large ETF inflows or outflows could therefore contribute to buying or selling pressure in the stock.Price ActionDKNG Stock Price Activity: DraftKings shares were up 7.93% at $20.07 at the time of publication Monday, according to Benzinga Pro data.Image via Shutterstock Read Also: ‘Big Short’ Investor Steve Eisman Says Forget the AI Hype — These 6 ‘Picks and Shovels’ Stocks Could Be the Real Winners