
DraftKings (DKNG) Stock Forecast & Price Target
DraftKings (DKNG) Analyst Ratings
Bulls say
DraftKings has demonstrated strong financial performance with an 80 basis point year-over-year improvement in structural sportsbook hold, surpassing company targets. The effectiveness of the company's cross-sell strategy has contributed to an increased lifetime value (LTV) for customers and a reduction in churn rates. Additionally, DraftKings has raised its full-year 2025 revenue guidance by $50 million, now estimating a midpoint of $6.45 billion, driven by increased engagement in player-centric betting, particularly for the NFL and NBA.
Bears say
DraftKings has experienced a significant decline in adjusted EBITDA, dropping by approximately $104 million in the most recent quarter, primarily due to rising customer acquisition costs and challenges with conversion rates. The company's handle growth also showcased a concerning deceleration, with a decline from 25% to 15%, reflecting possible difficulties in maintaining user engagement and market performance. Additionally, operational expenditures are anticipated to rise, leading to adjusted EBITDA losses peaking in 2022, which raises concerns about profitability moving forward.
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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