moneyheap
DKNG · Analysis updated Nov 6, 2026, 9:48 AM ET
Why is DraftKings Inc. (DKNG) stock moving?
DraftKings rallied from about $19.77 on Oct 19 to $23.52 on Nov 5 ahead of earnings, with volume rising to 23.7M shares on Nov 5. That rally has reversed sharply. Q3 results missed on revenue ($1.33B against about $1.41B expected) and on loss per share. Management cut 2026 revenue guidance to $6.35B-$6.55B and 2026 adjusted EBITDA to $175M-$275M because of a $650M-$700M Predictions investment. The 2027 adjusted EBITDA outlook of $800M-$1B was below the roughly $1.12B the market expected. Shares fell about 24-25% after hours and hit a 52-week low near $16.94 on Nov 6. There are positives. Revenue grew 16%, sports revenue rose 31.5%, and monthly unique payers of 4.1M beat estimates. Management also sees Predictions revenue of $650M-$750M in 2027. Against that, marketing expense is up sharply, iGaming growth is weak, and near-term profitability is under pressure. Analyst targets will likely be cut. Volatility will probably stay high while investors judge whether the Predictions spending pays off.
News behind the analysis
- DraftKings (NASDAQ:DKNG) Reaches New 1-Year Low Following Weak EarningsShares hit a new 52-week low near $16.94 on Friday, down from a $23.52 prior close, after the Q3 results disappointed.
- Why is DraftKings stock plunging today?Shares fell 25.2% after hours to $17.60. Q3 adjusted loss was $0.53 per share against a $0.36 estimate, and revenue of $1.33B missed the roughly $1.41B consensus.
- DraftKings Q3 2026 Results: Revenue Up 16%, Guidance CutQ3 revenue grew 16% to $1.329B. 2026 adjusted EBITDA guidance was cut to $175M-$275M because of a $650M-$700M Predictions investment.
- DraftKings Stock Tumbles on Reduced 2026 Revenue Guidance2027 revenue guidance is $7.35B-$7.75B. Predictions revenue is guided to $650M-$750M in 2027. Q3 sports revenue rose 31.5% while iGaming grew only 2.1%.
- Stocks to Watch: DraftKings, Airbnb, Cloudflare, AffirmThe stock sank 24% to $17.82 after hours. 2026 revenue guidance is $6.35B-$6.55B against a FactSet estimate of $6.66B. Monthly unique payers were 4.1M, above the 3.86M consensus.
- DraftKings stock hits 52-week low at 17.23 USDYear-to-date losses reached 31.75%. Q3 revenue was $1.33B, up 16%. The full-year guidance cut was attributed to Predictions spending.
- DraftKings Q3 2026 Earnings Results & ReportQ3 EPS of -$0.70 missed the -$0.41 consensus. DraftKings has beaten EPS estimates in only 3 of the last 8 quarters.
- DraftKings Q3 Earnings: Strategic Pivot to Predictions Segment Masks Core ProfitabilityQ3 adjusted EBITDA loss widened to $317M from $126M. Marketing expense rose 68%. Management targets 2027 adjusted EBITDA of $800M-$1B.
- DraftKings Inc. $DKNG Stock: Sumitomo Mitsui Trust Group Inc. Reduces StakeManagement said Predictions could generate up to $750M of revenue in 2027. BTIG raised its target to $26 on Oct 29, while Zacks cut the stock to strong sell on Oct 13.
- DraftKings Earnings This Week: Here's What Investors Need to KnowBefore the report, the stock carried a Buy rating with an average target of $32.39. The company had maintained 2026 revenue guidance of $6.5B-$6.9B.