DraftKings (DKNG) Stock Overview
Operates as a digital sports entertainment and gaming company in the United States and internationally. More details
| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
DKNG Community Fair Values
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Analyst Price Targets
DraftKings Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$25.22 |
| 52 Week High | US$48.78 |
| 52 Week Low | US$20.46 |
| Beta | 1.67 |
| 1 Month Change | 9.89% |
| 3 Month Change | -5.26% |
| 1 Year Change | -28.66% |
| 3 Year Change | 5.08% |
| 5 Year Change | -38.47% |
| Change since IPO | 157.35% |
Recent News & Updates
Seeking Alpha • Apr 30
DraftKings: A Gem That Has Lost Its Luster
Summary DraftKings has transitioned from high-growth hype to a stable, dominant online sports betting leader with strong market share and margin expansion potential. DKNG’s asset-light model enables continued margin growth, outperforming peers reliant on physical locations, and supports sustainable double-digit topline growth. Risks from emerging prediction markets exist, but DKNG’s entrenched user base and new product initiatives mitigate immediate threats. I view DKNG as a compelling buy at current levels, with upside from further state expansion, international growth, and operational leverage. Read the full article on Seeking Alpha
Narrative Update • Apr 28
DKNG: Prediction Market Expansion Into All 50 States Will Drive Repricing
DraftKings' updated analyst price target edges down from about $55.65 to $54.68, as analysts factor in slightly higher discount rates, a more moderate profit margin outlook, and continued investment in prediction markets that now assume a future P/E of about 27x. Analyst Commentary Street research on DraftKings has shifted toward more cautious assumptions, but a group of bullish analysts still see room for upside, particularly as the company leans into prediction markets and broadens its product set.
Narrative Update • Apr 13
DKNG: Prediction Market Push And Regulation Will Shape Future Profitability And Risk Profile
DraftKings' consensus analyst price target moved lower by a few dollars into the mid to high $30s range, as analysts incorporate softer 2026 revenue guidance, higher prediction market investment, and increased regulatory and tax pressures into their models. Analyst Commentary Recent research commentary around DraftKings has tilted more cautious, with many firms resetting long term expectations after the company issued softer 2026 revenue guidance and outlined heavier investment in prediction markets.Recent updates
Seeking Alpha • Apr 30
DraftKings: A Gem That Has Lost Its Luster
Summary DraftKings has transitioned from high-growth hype to a stable, dominant online sports betting leader with strong market share and margin expansion potential. DKNG’s asset-light model enables continued margin growth, outperforming peers reliant on physical locations, and supports sustainable double-digit topline growth. Risks from emerging prediction markets exist, but DKNG’s entrenched user base and new product initiatives mitigate immediate threats. I view DKNG as a compelling buy at current levels, with upside from further state expansion, international growth, and operational leverage. Read the full article on Seeking AlphaNarrative Update • Apr 28
DKNG: Prediction Market Expansion Into All 50 States Will Drive Repricing
DraftKings' updated analyst price target edges down from about $55.65 to $54.68, as analysts factor in slightly higher discount rates, a more moderate profit margin outlook, and continued investment in prediction markets that now assume a future P/E of about 27x. Analyst Commentary Street research on DraftKings has shifted toward more cautious assumptions, but a group of bullish analysts still see room for upside, particularly as the company leans into prediction markets and broadens its product set.Narrative Update • Apr 13
DKNG: Prediction Market Push And Regulation Will Shape Future Profitability And Risk Profile
DraftKings' consensus analyst price target moved lower by a few dollars into the mid to high $30s range, as analysts incorporate softer 2026 revenue guidance, higher prediction market investment, and increased regulatory and tax pressures into their models. Analyst Commentary Recent research commentary around DraftKings has tilted more cautious, with many firms resetting long term expectations after the company issued softer 2026 revenue guidance and outlined heavier investment in prediction markets.
Narrative Update • Mar 30
DKNG: Federally Regulated Prediction Contracts Will Support Nationwide Expansion Plans
Analysts have trimmed the DraftKings fair value estimate from about $45.34 to $35.95 as they reset long term assumptions on revenue growth, margins, and future P/E in response to a wave of lower price targets that cite higher prediction market investment, competition, taxes, and softer 2026 guidance. Analyst Commentary Recent research on DraftKings clusters around two themes, prediction market investment and the reset to 2026 guidance, with valuation views splitting between those who see current expectations as conservative and those who are more skeptical about execution and industry growth.Narrative Update • Mar 16
DKNG: Prediction Market Expansion And Regulation Will Shape Future Margins And Earnings Power
DraftKings' updated fair value estimate moves from $30.00 to $24.00 as analysts recalibrate for softer revenue growth and profit margins alongside heavier predictions market investment, even as several price targets in the $30 to $50 range still highlight confidence in the long term potential of the combined online sports betting and predictions product. Analyst Commentary Recent Street research on DraftKings points to a mixed setup for investors, with many firms trimming price targets while still maintaining positive or neutral ratings.Narrative Update • Mar 02
DKNG: Prediction Market Reset And Regulation Will Drive Future Share Repricing
Analysts have collectively trimmed their DraftKings price targets, with our fair value estimate moving from about $60.48 to $55.65 as they factor in softer 2026 guidance and higher prediction market investment costs, along with expectations for improved margins and a lower future P/E multiple. Analyst Commentary Across recent research, most firms have cut their DraftKings price targets, but many still describe the story as one of execution on guidance, heavier investment in prediction markets and a reassessment of valuation rather than a fundamental break in the long term opportunity.Narrative Update • Feb 16
DKNG: Regulatory Scrutiny On Prediction Markets Will Shape Future Share Repricing
Analysts have lowered our DraftKings fair value estimate from $68.84 to $60.48, reflecting reduced projected revenue growth, a more conservative profit margin outlook, and a higher future P/E assumption that is consistent with the recent wave of reduced Street price targets. Analyst Commentary Street research on DraftKings has leaned more cautious on near term expectations, with a series of reduced price targets as firms recalibrate their models and incorporate higher spending, competitive pressure, and regulatory considerations.Analysis Article • Feb 04
With A 26% Price Drop For DraftKings Inc. (NASDAQ:DKNG) You'll Still Get What You Pay For
DraftKings Inc. ( NASDAQ:DKNG ) shareholders won't be pleased to see that the share price has had a very rough month...Narrative Update • Feb 02
DKNG: Prediction Market Uncertainty And Regulation Will Shape Margins And Earnings Power
Analysts have reduced their DraftKings price targets by a few dollars, while still highlighting expectations for higher revenue growth, improving profit margins and a lower future P/E multiple in their updated models. Analyst Commentary Recent research on DraftKings reflects a mixed but increasingly cautious tone, with several Bearish analysts trimming price targets and, in a few cases, reducing ratings after the latest quarterly results and guidance updates.Narrative Update • Jan 19
DKNG: Federally Regulated Event Contracts Will Unlock New States Over Time
Analysts have nudged their DraftKings fair value estimate higher to about US$45.34 from roughly US$44.47, reflecting updated views on slightly stronger long term profitability; a modestly lower discount rate; and a somewhat lower forward P/E multiple after recent price target revisions and mixed rating changes across the Street. Analyst Commentary Recent Street research on DraftKings shows a split tape, with some firms turning more constructive around the long term opportunity and others calling out nearer term risks tied to prediction markets, hold volatility and regulatory questions.Narrative Update • Jan 05
DKNG: Federally Regulated Prediction Markets Will Unlock New States And Long-Term Upside
Analysts have trimmed their average price target on DraftKings by about $0.34 to roughly $44.47. Slightly higher discount rates, modestly softer long term growth and margins, and a higher assumed future P/E multiple reflect a more balanced view of near term headwinds and long term prediction market and iGaming opportunities.Narrative Update • Dec 14
DKNG: Prediction Market Expansion Will Pressure Margins And Future Earnings Power
Analysts have trimmed their fair value estimate for DraftKings to $30.00 from about $40.89 as they moderate expectations for revenue growth, profitability, and future valuation multiples in light of increased competition from prediction markets, recent hold volatility, and more cautious near term earnings outlooks, despite a still constructive long term industry backdrop. Analyst Commentary Recent Street research reflects a clear reset in expectations for DraftKings as multiple firms trim price targets and, in some cases, ratings.Analysis Article • Dec 05
DraftKings Inc.'s (NASDAQ:DKNG) P/S Is Still On The Mark Following 26% Share Price Bounce
DraftKings Inc. ( NASDAQ:DKNG ) shareholders are no doubt pleased to see that the share price has bounced 26% in the...Narrative Update • Nov 30
DKNG: Expanding Into New States Will Mitigate Rising Prediction Market Threats
DraftKings' average analyst price target has been lowered by approximately $1.24 to $44.81, as analysts cite continued hold volatility, increased promotional spending, and heightened competition from prediction markets as primary factors behind the revisions. Analyst Commentary Recent analyst coverage for DraftKings presented a wide range of perspectives on the company's outlook, reflecting both confidence in its growth prospects and caution regarding emerging challenges.Narrative Update • Nov 16
DKNG: Future Expansions Into New Markets Will Offset Competitive Risks
The consensus analyst price target for DraftKings has been reduced by approximately $5 to a new level near $46. Analysts point to persistent hold volatility, increased promotional spending, and growing risks from prediction market competition as key reasons for the adjustment.Narrative Update • Oct 31
DKNG: Emerging Sports Prediction Markets Will Drive Sector Competition Over Coming Quarters
The analyst price target for DraftKings was modestly reduced by $0.45 to $50.74. Analysts cited ongoing competition from prediction markets and short-term margin pressures as influencing factors in their revised outlook.Narrative Update • Oct 17
Legal Online Sports Betting Will Expand iGaming Markets
The consensus analyst price target for DraftKings was recently lowered by approximately $1.64. Analysts cited ongoing margin pressures in the third quarter and increasing competition from prediction markets as the primary drivers of more cautious estimates.Narrative Update • Oct 03
Legal Online Sports Betting Will Expand iGaming Markets
DraftKings' analyst price target has moved slightly lower from $54.86 to $52.83, as analysts point to mounting prediction market competition and margin pressures as key headwinds that impact growth expectations. Analyst Commentary Analysts have offered a range of perspectives on DraftKings' outlook, highlighting both supporting factors and ongoing concerns.Analysis Article • Oct 02
DraftKings Inc.'s (NASDAQ:DKNG) Stock Retreats 27% But Revenues Haven't Escaped The Attention Of Investors
DraftKings Inc. ( NASDAQ:DKNG ) shares have had a horrible month, losing 27% after a relatively good period beforehand...Narrative Update • Sep 04
Legal Online Sports Betting Will Expand iGaming Markets
Analysts maintain a positive outlook on DraftKings driven by ongoing revenue growth, market expansion, and asset revaluation despite manageable tax and regulatory risks, leaving the consensus Analyst Price Target unchanged at $54.86. Analyst Commentary Bullish analysts anticipate continued revenue growth driven by the legalization of online sports betting in additional states, market share gains, and improving customer retention, supported by declining acquisition costs and strong Q2 performance.Analysis Article • Jul 04
Why We're Not Concerned About DraftKings Inc.'s (NASDAQ:DKNG) Share Price
DraftKings Inc.'s ( NASDAQ:DKNG ) price-to-sales (or "P/S") ratio of 4x may look like a poor investment opportunity...Analysis Article • May 27
Here's Why DraftKings (NASDAQ:DKNG) Can Afford Some Debt
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...Seeking Alpha • Apr 28
DraftKings: I Am Finally Upgrading My Investment Outlook To Bullish, Here's Why
Summary DraftKings is poised for significant growth as it transitions to profitability in 2025, driven by a rapidly expanding customer base that grew 42.25% YoY in 2024. Strategic investments in technology, data science, and live betting innovations, along with acquisitions like Simplebet, position DKNG to maintain its competitive edge and capitalize on secular growth. Despite macroeconomic risks, such as rising unemployment and potential recessionary pressures, DKNG's improving free cash flow of $407.60 million in 2024, with a projected $850 million in 2025, is attractive. Read the full article on Seeking AlphaSeeking Alpha • Apr 20
DraftKings: A Baby Thrown Out With The Tariff Bathwater
Summary DraftKings generates $4.3B in annual revenue, set to grow alongside the expanding industry. Maintaining the 38% market share over the next five years is key in positioning DKNG for substantial business growth. Robust sales growth, a strong industry outlook, and no foreseeable obstacles to forward earnings gains justify a positive rating for DKNG. Read the full article on Seeking AlphaSeeking Alpha • Mar 28
DraftKings: Excellent 2025 Momentum At An Attractive Valuation
Summary DraftKings is seeing excellent and accelerating growth momentum. The momentum will likely continue in 2025 as the company's customer base swells. DraftKings bottom-line is also seeing a significant rise as the growth comes while the costs are controlled. DraftKings is attractive valued considering the company's growth and potential. Read the full article on Seeking AlphaSeeking Alpha • Mar 18
DraftKings: A Pivotal 2025, Real Profits Ahead (Rating Upgrade)
Summary DraftKings previously checked every red flag on my list, but with the stock down 30% and 2025 prospects, it's time to change the tone. Despite unprofitable quarters and high expenses, DraftKings' unique customers grew 42% Y/Y, and 2025 could see profitability with close to half a billion dollars in free cash flow. At $38/share, DraftKings' valuation is starting to make sense, with a 41x EV/FCF multiple for a 35% growth company. After being a longtime bear, I'm upgrading DraftKings to a 'Buy'. Read the full article on Seeking AlphaSeeking Alpha • Feb 16
DraftKings: Incredible Customer Acquisition, Terrible Price (Rating Upgrade)
Summary DraftKings achieved a significant "beat and raise" in Q4, boosting its share price by ~15%, driven by new customer acquisition and better sportsbook hold percentages. Upgrading DraftKings to neutral. The company benefits from additional states legalizing sports gambling, a growing iGaming business, and economies of scale, but faces volatile trends and lofty FY25 EBITDA goals. DraftKings' FY25 outlook relies on 30%+ revenue growth and a significant increase in adjusted EBITDA margins, as well as a normalization of all unfavorable sports outcomes in FY24. Even if it hits this lofty guidance, DraftKings already trades at an expensive ~28x forward adjusted EBITDA and is priced for perfection. Read the full article on Seeking AlphaSeeking Alpha • Jan 16
DraftKings: Narrow Moat At An Unreasonable Price
Summary DraftKings' growth is strong, but there's no clear path to profitability. Third quarter results showed impressive revenue growth but declining gross margins and rising operating expenses, accompanied by a downward revision in guidance. The competitive landscape remains fierce, with DraftKings heavily reliant on high marketing spend, and new entrants like ESPN Bet increasing competition. Valuation is high at 21 times '25 Adjusted EBITDA estimates, making it risky to hold shares, especially with the potential for further guidance downgrades. Read the full article on Seeking AlphaSeeking Alpha • Dec 16
DraftKings: Odds Are In Investor's Favor
Summary In 3Q24, DKNG saw 39% y/y revenue growth, improved operating margin to -27.21%, and a 14% surge in new players. Overall, the industry continues to expand as more states legalize online gaming. Total market size to reach $39 billion by FY2029, growing at a rate close to 10% CAGR. DKNG continues to roll out multiple initiatives to capture growth while improving its margins. By 2025, the company expects a positive FCF of $850 million, representing an FCF margin of 13.28%. Valuation analysis suggests that if DKNG can meet its guidance and consistently generate FCF in the remaining years, there is a potential upside of 29%. Read the full article on Seeking AlphaSeeking Alpha • Nov 09
DraftKings: Haunted By The Ghost Of Reignmakers
Summary DraftKings faces significant litigation risks, including uncertainty about the legal status of Reignmakers NFTs. The company generated 9 figures in gross sales from the endeavor but is now the target of a class action lawsuit. A separate NFLPA lawsuit alleges DraftKings owes an estimated $65 million due to contract cancellation conditions having not been met. The changing of the guard in Washington could be a life raft for the company's digital asset problems, but the path forward remains very unclear. Read the full article on Seeking AlphaShareholder Returns
| DKNG | US Hospitality | US Market | |
|---|---|---|---|
| 7D | 8.1% | -1.3% | 2.1% |
| 1Y | -28.7% | 1.1% | 30.6% |
Return vs Industry: DKNG underperformed the US Hospitality industry which returned 1.1% over the past year.
Return vs Market: DKNG underperformed the US Market which returned 30.6% over the past year.
Price Volatility
| DKNG volatility | |
|---|---|
| DKNG Average Weekly Movement | 7.3% |
| Hospitality Industry Average Movement | 7.9% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: DKNG has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: DKNG's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2011 | 5,500 | Jason Robins | www.draftkings.com |
DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. The company offers online and retail sports betting, daily fantasy sports, digital lottery couriers, prediction markets, and other products, as well as retails sportsbooks. It also provides iGaming, or online casino products, which includes blackjack, roulette, baccarat and slot machines.
DraftKings Inc. Fundamentals Summary
| DKNG fundamental statistics | |
|---|---|
| Market cap | US$11.86b |
| Earnings (TTM) | US$3.71m |
| Revenue (TTM) | US$6.05b |
3,370x
P/E Ratio2.1x
P/S RatioIs DKNG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DKNG income statement (TTM) | |
|---|---|
| Revenue | US$6.05b |
| Cost of Revenue | US$1.45b |
| Gross Profit | US$4.61b |
| Other Expenses | US$4.60b |
| Earnings | US$3.71m |
Last Reported Earnings
Dec 31, 2025
Next Earnings Date
May 08, 2026
| Earnings per share (EPS) | 0.0075 |
| Gross Margin | 76.11% |
| Net Profit Margin | 0.061% |
| Debt/Equity Ratio | 290.7% |
How did DKNG perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/07 06:22 |
| End of Day Share Price | 2026/05/07 00:00 |
| Earnings | 2025/12/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
DraftKings Inc. is covered by 52 analysts. 33 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Pierre-Marie D'Ornano | Arete Research Services LLP |
| Brandt Montour | Barclays |
| Michael Hickey | Benchmark Company |