DraftKings (DKNG) is downgraded to a sell rating after a disappointing Q3 earnings report and a 20% year-to-date stock decline. DKNG's valuation remains stretched at 31x FY25 adjusted EBITDA, despite a significant guidance cut, and ongoing regulatory and competitive risks. The company was plagued by customer-friendly NFL outcomes in Q3, which is the same excuse that it made for poor earnings in the prior-year Q3.
For millions of American families, the Thanksgiving holiday is defined by two traditions: a turkey feast and football. While the on-field rivalries capture the nation's attention, a different kind of competition is taking place on the balance sheets of the companies that broadcast, stream, and facilitate wagers on these games.
DKNG weathers sharp sportsbook volatility as clustered NFL outcomes hit Q3 results, even as handle growth and retention signal underlying strength.
DKNG's 27.8% slide follows weak third-quarter results, softer 2025 guidance and rising spend on new products and media partnerships.
Three well-known stocks recently made bold moves to return more capital to shareholders, with over $5 billion in fresh buyback authorizations announced.
The sports betting firm said Wednesday that it will debut a stand-alone prediction market app called FanDuel Predicts, in partnership with CME Group.
Recently, Zacks.com users have been paying close attention to DraftKings (DKNG). This makes it worthwhile to examine what the stock has in store.
Investor sentiment towards US-exposed bookmakers such as Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT), Draftkings Inc (NASDAQ:DKNG) Entain PLC (LSE:ENT) is currently dominated by "caution and fear" due to the rise of prediction markets. This was one of the key takes from the Berenberg leisure analysts after a trip to the US, where they encountered “the most concern and fear we have felt since 2022” due to the fast-developing prediction market space and a fear that it will eat the lunch of the sports betting and iGaming industry.
DKNG, FARM and GDEN have been added to the Zacks Rank #5 (Strong Sell) List on Nov. 7, 2025.
While the top- and bottom-line numbers for DraftKings (DKNG) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
DraftKings Chairman, Co-Founder and CEO Jason Robins joins 'Mad Money' host Jim Cramer to talk quarterly results, the growth of prediction markets, trends in the sports gambling space, and more.
The sports-betting company is investing more in prediction markets and expanding to new states.