DraftKings Reports Strong Growth but Issues Conservative Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy DKNG?
Source: Fool
- Significant Revenue Growth: DraftKings reported a 43% year-over-year revenue increase in Q4, reaching $1.99 billion, with sportsbook revenue soaring 64% to $1.4 billion, indicating strong market performance despite competitive pressures from prediction markets.
- Prediction Market Challenges: As more prediction market platforms emerge, DraftKings has launched its own, and while it has yet to impact its sportsbook business, the CEO highlighted it as the biggest growth opportunity since the Supreme Court legalized online sports betting.
- Conservative Future Outlook: The company projects 2026 revenue between $6.5 billion and $6.9 billion, below the $7.3 billion analyst consensus, although this still represents a 14% revenue growth at the high end of guidance and a 45% EBITDA growth, reflecting a cautious stance on future performance.
- Investor Confidence Shaken: The conservative guidance and potential disruption from prediction markets have led to a 35% decline in DraftKings' stock year-to-date, yet the current forward P/E ratio of 16 times suggests undervaluation amidst strong growth, potentially offering a buying opportunity for investors.
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Analyst Views on DKNG
Wall Street analysts forecast DKNG stock price to rise
29 Analyst Rating
23 Buy
6 Hold
0 Sell
Strong Buy
Current: 22.160
Low
30.00
Averages
42.69
High
53.00
Current: 22.160
Low
30.00
Averages
42.69
High
53.00
About DKNG
DraftKings Inc. is a digital sports entertainment and gaming company. It provides users with online and retail sports betting (together, Sportsbook), online casino (iGaming) and daily fantasy sports product offerings, as well as digital lottery courier, media, and other product offerings. Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 28 states, Washington, D.C., and in Ontario, Canada. It operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states under its Golden Nugget Online Gaming brand. It owns Jackpocket, a digital lottery courier app in the United States. It is both an official daily fantasy and sports betting partner of the NFL, NHL, PGA TOUR, WNBA and UFC, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA. It also owns and operates DraftKings Network, a multi-platform content ecosystem.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Regulatory Call: NFL executives have stated that the current lack of effective regulation in sports prediction markets necessitates continued engagement with the CFTC to establish essential regulatory frameworks that protect game integrity.
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- Investor Sentiment: Despite the overall market gains, retail sentiment towards the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) was extremely bearish amid high message volume, suggesting uncertainty that could influence short-term investment decisions.
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