
DraftKings (DKNG) Stock Forecast & Price Target
DraftKings (DKNG) Analyst Ratings
Bulls say
DraftKings has experienced a significant acceleration in online sports betting (OSB) handle growth, reaching +10% year-over-year, which improved to +17% in October, suggesting a robust upward trend in consumer engagement. The company is strategically positioned to enhance its market share with partnerships, particularly in the NBA through contracts with NBCUniversal and ESPN, while maintaining a strong revenue share in all states where it operates. Additionally, DraftKings is transitioning to profitability and is expected to achieve double-digit revenue growth, supported by the accelerated growth in iCasino net gaming revenue (NGR) and expanding market access opportunities.
Bears say
DraftKings has experienced a significant decline in stock value, falling approximately 40% since late August, which contrasts with a modest 5% increase in the S&P 500 and a 20% decrease in the U.S. online gambling sector. Financial performance indicators reveal that DraftKings reported an EBITDA loss of $126.5 million, which was not only worse than their revised expectations but also the consensus estimates, compounded by increased launch costs for new offerings like 'DraftKings Predictions.' Furthermore, the company has reduced its EBITDA guidance for 2025 from a range of $800-900 million down to $450-550 million, reflecting challenges in revenue generation due to unfavorable outcomes in major sporting events and slight market share erosion.
This aggregate rating is based on analysts' research of DraftKings and is not a guaranteed prediction by Public.com or investment advice.
DraftKings (DKNG) Analyst Forecast & Price Prediction
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