
DraftKings (DKNG) Stock Forecast & Price Target
DraftKings (DKNG) Analyst Ratings
Bulls say
DraftKings has demonstrated significant growth in its online sports betting (OSB) and i-gaming segments, with OSB handle growth accelerating to +10% year-over-year and iCasino net gaming revenue (NGR) rising by +25% year-over-year. The company strategically expands its market presence through partnerships, notably improving its reach in basketball and football via NBCUniversal and ESPN contracts, which align with its first or second position in all states where it operates. Furthermore, DraftKings is positioned for continuous revenue growth with management's optimistic outlook on profitability and the potential for future revenue opportunities driven by advancements in predictive event platforms and new marketing strategies.
Bears say
DraftKings has experienced a significant decline in stock price, down approximately 40% since the end of August, contrasting sharply with the S&P 500's 5% gain and a 20% decline in the U.S. online sector. The company's EBITDA loss of $126.5 million not only fell short of revised expectations but also reflected challenges related to high launch costs for new products, leading to a reduced EBITDA guidance for 2025 of $450 to $550 million, a substantial decrease from prior estimates. Furthermore, a revenue guidance cut due to unfavorable sports outcomes in September and October, reportedly impacting revenues by about $300 million, signals ongoing structural vulnerabilities affecting future profitability and market share.
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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