DraftKings Inc. (NASDAQ:DKNG) shares are rising Tuesday after a sharp post-earnings selloff, as analysts weigh in with a dozen new ratings and most keep bullish views.
- DraftKings stock is surging to new heights today. What’s fueling DKNG momentum?
DraftKings Stock Rises After Post-Earnings Selloff
Investors dumped DraftKings on Friday, sending shares down 21% after the third-quarter report disappointed and 2026 revenue guidance dropped. Another 1.3% decline followed Monday, Barron’s reported, giving the stock its roughest two-session stretch since November 2022.
The report showed a 53-cent adjusted shortfall per share, larger than the 39-cent shortfall analysts projected. Revenue grew 16% to about $1.33 billion, yet it still came in under the roughly $1.40 billion consensus.
DraftKings also trimmed its 2026 revenue range to $6.35 billion up to $6.55 billion, from $6.50 billion up to $6.90 billion, which sits below the roughly $6.67 billion analysts expected. For 2027, it guided to $7.35 billion up to $7.75 billion, against about $7.60 billion estimated.
CEO Jason Robins called the quarter “a pivotal moment for DraftKings.” Robins said Predictions has drawn over 1.6 million customers so far this year. CFO Alan Ellingson said the established business throws off plenty of free cash to bankroll the Predictions push.
Analysts Keep Buy Ratings On DraftKings
Twelve new analyst ratings have come out since the earnings report.
StoneX analyst Mike Hickey slashed the 2026 EBITDA forecast from $575 million to $176 million. Hickey blamed waning demand in New York plus a stronger Fanatics, and noted that a record 2025 leaves little room to improve. Hickey still held a Buy rating along with a $30 price target.
Truist Securities analyst Barry Jonas lowered the target from $26 to $22 but stayed at Buy. Shares already trade cheaply even if the new ventures earn nothing, Jonas reasoned. Customers who stay, plus a payback of about 20 months on acquiring them, mean DraftKings should turn free cash flow positive in 2028, Jonas expects.
TD Cowen analyst Lance Vitanza stayed at Buy and moved the target from $35 down to $25.
Analysts Turn More Cautious On DraftKings
JPMorgan analyst Daniel Politzer downgraded DraftKings from Overweight to Neutral and moved the target from $30 down to $21. Texas Capital Securities analyst David Bain kept a Hold rating and lowered the target from $26 to $20. Bain says the price cuts DraftKings is using to hold off Flutter’s FanDuel will cost it about $100 million of 2026 sports betting sales. It will take several quarters, Bain wrote, to regain “underwriting confidence in the new numbers.”
The consensus rating remains Buy, with an average target of $27 and individual targets between $21 and $40.
DKNG Shares Are Climbing
DKNG Price Action: DraftKings shares were up 1.07% at $18.90 at the time of publication on Tuesday, according to Benzinga Pro.
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