
DraftKings (DKNG) Stock Forecast & Price Target
DraftKings (DKNG) Analyst Ratings
Bulls say
DraftKings has demonstrated significant growth in its online sports betting (OSB) segment, with a year-over-year increase in OSB handle accelerating to 10% and reaching 17% in October, indicating robust demand. The company is projected to achieve approximately $2.043 billion in revenue for the fourth quarter of 2024, reflecting an increase from previous estimates, alongside an EBITDA forecast of $300 million. DraftKings maintains a strong market presence, holding an 80% market share in monthly active users, and is well-positioned to capitalize on expansion opportunities and improvements in gross margins moving forward.
Bears say
DraftKings's stock has experienced a significant decline of approximately 40% since late August, in contrast to a 5% increase in the S&P 500 and a 20% drop in the US online sector, coinciding with a substantial reduction in consensus 2025 EBITDA guidance. The company's anticipated EBITDA for 2025 has been lowered to a range of $450-550 million from previous estimates of $800-900 million, underscoring challenges in maintaining profitability amid rising marketing expenses and low hold performance in key sports events. Additionally, concerns over customer acquisition costs and competitive market dynamics are likely to exert continued pressure on top-line growth and EBITDA forecasts, leading to further potential downgrades in future guidance.
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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