DraftKings Inc. (DKNG) shares surged 5.26% in pre-market trading on Friday, following the release of its first-quarter 2025 financial results that exceeded analyst expectations. The online sports betting and gaming company demonstrated resilience and continued growth, despite facing some 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.

While the company still reported a quarterly loss of $33.86 million, the better-than-expected earnings results seem to have boosted investor confidence. Analysts maintain a generally positive outlook on DraftKings, with the current average rating being "buy." However, some adjustments to price targets have been observed, with BofA Global Research cutting its price objective to $50 from $60, while Needham maintained its target at $65 per share. Morgan Stanley analyst Stephen Grambling reiterated a Buy rating with a $53 price target, citing the company's resilient performance and growth potential despite ongoing challenges in the industry.