DraftKings (DKNG) Stock Forecast & Price Target

DraftKings has demonstrated strong financial performance with a notable year-over-year improvement in structural sportsbook hold, increasing by 80 basis points, surpassing company targets. The company’s effective cross-sell strategy has enhanced customer lifetime value (LTV) and reduced churn, while the recent adjustment of 2025 revenue guidance to a midpoint of $6.45 billion reflects positive growth expectations. Additionally, a significant increase in Same Game Parlays by 500-600 basis points year-over-year, particularly in the NFL and NBA, has contributed to a favorable betting mix, signaling robust engagement and overall momentum in the business.

DraftKings is experiencing significant financial challenges, including a $104 million decline in adjusted EBITDA for the quarter and heightened customer acquisition costs, which are projected to continue impacting top-line growth. Additionally, the company has reported a notable deceleration in handle growth, dropping from 25% to 15%, indicating potential weaknesses in customer engagement and market momentum. Future medium-term estimates have been revised downward due to rising operating expenses, creating a cautious financial outlook amid competitive pressures and operational inefficiencies like broadcast latency.