DraftKings Inc. (DKNG) shares surged 5.94% in pre-market trading on Friday, following the release of its better-than-expected first-quarter 2025 financial results. The online sports betting and gaming company demonstrated resilience and continued growth, outperforming analyst expectations despite facing challenges in the competitive market.

According to the earnings report, DraftKings posted a quarterly adjusted loss of 7 cents per share, beating the consensus estimate of an 8-cent loss. This performance marks a significant improvement from the 30-cent loss reported in the same quarter last year. Revenue for the quarter rose 19.9% to $1.41 billion, slightly below the $1.45 billion analysts had projected, but still showcasing strong year-over-year growth.

The market's positive reaction was further bolstered by analyst optimism. Despite some price target adjustments, the overall sentiment remains bullish. Morgan Stanley analyst Stephen Grambling reiterated a Buy rating with a $53 price target, citing the company's resilient performance and growth potential. Needham maintained its target at $65 per share, while BofA Global Research adjusted its price objective to $50 from $60. The current average analyst rating on DraftKings shares is "buy," with 29 analysts recommending either "strong buy" or "buy," and only 4 maintaining a "hold" position. This positive outlook, combined with the company's better-than-expected earnings, appears to be driving investor confidence and contributing to the stock's pre-market surge.