Meridian Funds, managed by ArrowMark Partners, saw a 4.10% return in the second quarter of 2025, compared to the Russell 2500 Growth Index’s 11.31% return. DraftKings Inc. (NASDAQ:DKNG) stock closed at $42.73 per share on August 11, 2025, with a market capitalization of $21.214 billion. The company has shown significant growth potential in the digital sports entertainment and gaming industry.

DraftKings Inc. (NASDAQ:DKNG) has seen a 35.91% increase in share value over the last 52 weeks. The company has transitioned to more disciplined growth, resulting in substantial free cash flow. DraftKings Inc. (NASDAQ:DKNG) has reported 20% revenue growth and over 350% higher EBITDA, positioning it well for future market expansion and potential entry into regulated prediction markets.

Despite its potential, DraftKings Inc. (NASDAQ:DKNG) is not among the 30 most popular stocks among hedge funds. While the company offers investment opportunities, certain AI stocks may provide greater upside potential with lower downside risk. Investors seeking undervalued AI stocks can explore options that benefit from current economic trends for potential gains.

Read more at Yahoo Finance: Do You Believe in the Upside Potential of DraftKings (DKNG)?