DraftKings (DKNG) Stock Forecast & Price Target

DraftKings has demonstrated positive momentum in its fundamental financials, with a notable acceleration in online sports betting (OSB) handle growth to +10% year-over-year, further increasing to +17% in October. The company holds a strong market position, ranking first or second in revenue share across all states where it operates, and is expected to benefit from enhanced marketing reach through new partnerships with NBC and ESPN, particularly for NBA and NFL coverage. Additionally, DraftKings has transitioned to profitability and is well-positioned for double-digit revenue growth, particularly with the anticipation of launching a predictive event platform and ongoing developments in iGaming and its NFT marketplace.

DraftKings has experienced a steep decline in share price, falling approximately 40% from late August highs, coinciding with a notable discrepancy between 2025 EBITDA expectations and the company's guidance, which was cut significantly. In the third quarter of 2025, DraftKings reported an EBITDA loss of $126.5 million, which was substantially worse than both revised estimates and analyst predictions, leading to a downward adjustment of future earnings guidance for 2025 to a range of $450-550 million from an earlier forecast of $800-900 million. Additionally, the company's recent revenue performance was disappointing, with net revenues of $1.14 billion in 3Q25 falling short of both internal models and consensus estimates by 5% and 8%, respectively, largely due to adverse sports outcomes impacting revenue projections.