DraftKings Inc. (NASDAQ:DKNG) shares closed more than 7% higher today, recovering slightly from a huge sell-off on Friday, which was followed by the company’s Q4 results. While the company posted Q4 revenue of $473 million, beating the consensus estimate of $445.3 million, monthly user numbers missed expectations and the company provided a poor profit outlook.

Analysts at Oppenheimer raised their 2023 revenue estimate by 15%, but lowered their 2023 EBITDA estimate by $225 million, reflecting the company investing into an OSB market growing faster than industry expectations.

Analysts said they acknowledge rising interest rates make TAM stories hard for short-term investors, however, they see rapid OSB adoption justifying management's strategic investments. The analysts encouraged long-term investors to accumulate the company’s shares based on its top-2 positioning of owning the customer as leagues increasingly rely on digital players to drive fan engagement.