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DraftKings Inc (DKNG) Stock

DraftKings Inc Stock Details, Movements and Public Alerts

DraftKings Inc (DKNG): Dominating America's $140 Billion Sports Betting Revolution

Under CEO Jason Robins' leadership since founding in 2012, DraftKings evolved from daily fantasy sports startup into America's second-largest online sportsbook behind FanDuel. The company's vertically integrated technology stack—proprietary risk management systems, same-game parlay engines, and live streaming integration—creates user experiences that regional casino operators struggle to match. Recent iGaming expansion (online casino games) adds higher-margin revenue complementing sports betting, while strategic partnerships with ESPN and professional leagues deepen brand moat. Despite burning $500M+ annually on customer acquisition, DraftKings projects 2025 positive EBITDA as marketing efficiency improves and newer states mature. Regulatory expansion into large markets like Texas and California could double addressable market, while international opportunities (particularly Canada and potentially Latin America) remain largely untapped. For growth investors willing to accept near-term losses and regulatory uncertainty, DraftKings offers leveraged exposure to secular shift from illegal offshore betting to regulated digital platforms.

52-Week Range

$53.61 - $26.23

-44.06% from high · +14.33% from low

Avg Daily Volume

18,188,742

20-day average

100-day avg: 10,895,656

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

N/A

Forward P/E

16.00

Price to Book

17.16

EV/EBITDA

-36.37

EPS (TTM)

-$0.65

Price to Sales

2.77

Beta

1.98

More volatile than market

How is DKNG valued relative to its earnings and growth?
Valuation data is not available for this stock.
What is DKNG's risk profile compared to the market?
With a beta of 1.98, DraftKings Inc is significantly more volatile than the market. For every 10% market move, this stock tends to move 20% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 17.16 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

-5.63%

Operating Margin

9.96%

EBITDA

$-30,908,000

Return on Equity

-26.40%

Return on Assets

-4.64%

Revenue Growth (YoY)

36.90%

Earnings Growth (YoY)

184.60%

How profitable and efficient is DKNG's business model?
DraftKings Inc achieves a profit margin of -5.63%, meaning it retains $-5.63 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 9.96% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at -26.40% and ROA at -4.64%, the company achieves moderate returns on invested capital.
What are DKNG's recent growth trends?
DraftKings Inc's revenue grew by 36.90% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 184.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against GAMBLING industry averages for proper context.

Company Size & Market

Market Cap

$15.0B

Revenue (TTM)

$5.41B

Revenue/Share (TTM)

$11.02

Shares Outstanding

496.47M

Book Value/Share

$2.04

Asset Type

Common Stock

What is DKNG's market capitalization and position?
DraftKings Inc has a market capitalization of $15.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 496.47M shares outstanding, the company's ownership is relatively concentrated. As a participant in the GAMBLING industry, it competes with other firms in this sector.
How does DKNG's price compare to its book value?
DraftKings Inc's book value per share is $2.04, while the current stock price is $29.99, resulting in a price-to-book (P/B) ratio of 14.74. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$50.74

69.19% upside potential

Analyst Recommendations

Strong Buy

6

Buy

23

Hold

5

Sell

0

Strong Sell

0

How reliable are analyst predictions for DKNG?
34 analysts cover DKNG with 85% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $50.74 implies 69.2% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on DKNG?
Current analyst recommendations:6 Strong Buy, 23 Buy, 5 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Nov 1, 2025, 02:34 AM

Technical Indicators

RSI (14-day)

24.31

Oversold

50-Day Moving Average

$43.11

-30.43% below MA-50

200-Day Moving Average

$40.14

-25.29% below MA-200

MACD Line

-3.00

MACD Signal

-2.37

MACD Histogram

-0.63

Bearish

What does DKNG's RSI value tell investors?
The RSI (Relative Strength Index) for DKNG is currently 24.31, indicating the stock is in oversold territory (below 30). This indicates heavy selling pressure that may have pushed the price too low too fast. Oversold readings can present buying opportunities, but stocks can remain oversold in strong downtrends. Look for RSI to rise above 30 as a potential recovery signal. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
How should traders interpret DKNG's MACD and moving average crossovers?
MACD analysis shows the MACD line at -3.00 below the signal line at -2.37, with histogram at -0.63. This bearish crossover indicates downward pressure. The 50-day MA ($43.11) is above the 200-day MA ($40.14), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 12, 2025, 12:44 AM

Active Alerts

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DraftKings Inc (DKNG) Stock Analysis 2025: Complete Investment Guide

In August 2024, DraftKings reported its first-ever quarterly operating profit, marking a turning point from growth-at-all-costs to sustainable profitability. For Jason Robins, this milestone validated his strategy of investing aggressively in customer acquisition during state launch windows to build long-term market leadership. With 30+ states now legal for online sports betting and the company holding #2 national market share, DraftKings' position appears defensible. Investors must weigh the attractive market opportunity—$140B total addressable market in the U.S. alone—against execution risks, competitive pressures from FanDuel and casino operators, and regulatory uncertainties that could reshape industry economics overnight.

Business Model & Competitive Moat

DraftKings generates revenue through gross gaming revenue (GGR)—the difference between wagers placed and payouts to winners—taking approximately 6-9% hold on sports bets and 3-5% on iGaming. The business model's economics improve dramatically with scale: customer acquisition costs average $400-500 per user but payback periods of 12-18 months create positive lifetime value once marketing moderates. DraftKings' competitive moats include proprietary technology enabling complex bet types (same-game parlays generating 40% higher margins than straight bets), regulatory licenses representing barriers to entry in each state, brand recognition from early market positioning, and network effects as more users create liquidity for live betting markets. The company's vertical integration—owning technology rather than white-labeling casino operators' platforms—provides operational flexibility and better unit economics long-term versus competitors using third-party providers.

Financial Performance

  • •Revenue: $4.8 billion in 2024, growing 60%+ annually as states mature and user base expands
  • •User Growth: 8 million monthly active users, up from 3 million in 2022, with improving engagement metrics
  • •Profitability Path: Adjusted EBITDA improving from -$700M in 2023 to projected +$150M in 2025
  • •Cash Burn: $600 million annually in free cash flow deficit, requiring access to capital markets
  • •Market Share: 35% of U.S. online sports betting Handle, trailing only FanDuel's 45%

Growth Catalysts

  • •State Expansion: Texas, California, Florida legalization could add $2B+ annual revenue opportunity
  • •iGaming Penetration: Online casino games growing 3x faster than sportsbook with better margins
  • •Profitability Inflection: Marketing efficiency improving as brand awareness reduces need for promotional spending
  • •International Expansion: Canada launch successful, potential entry into Latin American markets
  • •Product Innovation: Microbetting, live streaming integration, and social features increasing engagement

Risks & Challenges

  • •Regulatory Risk: Tax rate increases (currently 15-51% by state) could devastate unit economics overnight
  • •Competition: FanDuel's larger market share and backing by Flutter Entertainment creates formidable rival
  • •Customer Acquisition Arms Race: Promotional spending spiraling if competitors maintain aggressive marketing
  • •Sports Betting Commoditization: Odds convergence reducing differentiation, making retention expensive
  • •Problem Gambling Backlash: Regulatory crackdowns on advertising or betting limits threatening growth trajectory

Competitive Landscape

The U.S. online sports betting market consolidated into a three-tier structure: leaders DraftKings and FanDuel (~80% combined share), casino operators like BetMGM and Caesars (15%), and regional players (5%). FanDuel's advantage stems from parent Flutter Entertainment's global expertise and deeper pockets for customer acquisition. DraftKings differentiates through superior technology (faster in-play betting, innovative parlay builders) and direct customer relationships versus casino operators relying on land-based loyalty programs. The competitive dynamic favors scale—leaders can afford customer acquisition costs that regional players cannot match, while regulatory compliance costs create fixed burdens easier to absorb at higher volumes. International giants like bet365 entering the U.S. market represent potential threats, though DraftKings' first-mover advantages in brand and licenses provide near-term protection.

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors with 3-5 year horizons comfortable with volatility and unprofitable companies
  • ✓Thematic investors betting on gambling legalization and digital transition secular trends
  • ✓Aggressive growth portfolios accepting regulatory risk for potential multi-bagger returns
  • ✓Investors believing DraftKings will achieve FanDuel parity and extract monopolistic profits long-term

Less Suitable For

  • ✗Conservative investors requiring current profitability and positive cash flow
  • ✗Income-focused portfolios (no dividend, cash-burning operations)
  • ✗ESG investors concerned about problem gambling and societal impacts
  • ✗Value investors seeking cheap assets (trades at high EV/Sales given EBITDA losses)

Investment Thesis

DraftKings merits a SPECULATIVE BUY rating for growth investors with appropriate risk tolerance. The bull case hinges on three assumptions: (1) sports betting legalization continues expanding to large states, (2) DraftKings maintains #2 market position as industry consolidates, (3) EBITDA margins reach 20%+ at maturity similar to European peers. If all three materialize, the stock could deliver 200-300% returns over 3-5 years. However, regulatory risk looms large—tax increases, advertising restrictions, or betting limits could destroy profitability before maturity. Competition from FanDuel prevents pricing power, forcing continued promotional spending. The path to profitability requires perfect execution across state expansions, customer retention, and margin improvement. This is not a core portfolio holding but rather a calculated bet on American gambling's future, appropriate only for investors who can afford total loss in exchange for asymmetric upside potential.

Conclusion

Position DraftKings as 2-5% allocation in aggressive growth portfolios or thematic gambling sleeves. The stock will experience significant volatility around state legalization votes, quarterly EBITDA progress, and regulatory developments. Consider building positions during market sell-offs when growth stocks face indiscriminate pressure, maintaining strict stop-loss discipline if fundamentals deteriorate (market share losses, EBITDA guidance cuts). The risk-reward favors patient investors who believe online betting represents irreversible consumer behavior shift—but only if willing to accept that regulatory changes could eliminate value overnight.
Bull Case
$85 (150% upside)
Base Case
$50 (47% upside)
Bear Case
$15 (56% downside)

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