High-Growth Stocks Underperform in 2025, Recovery Expected in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: Fool
- DraftKings Market Challenges: DraftKings shares fell 8% in 2025, closing 35% below their peak, primarily due to slowing industry growth and emerging competitors, yet brand strength and partnerships with NBCUniversal and ESPN will support future growth.
- Diversified Revenue Sources: Nearly half of DraftKings' revenue comes from casino-style gaming, and investors should focus on its broad revenue mix, which is expected to drive recovery in 2026.
- Recursion Drug Development Platform: Recursion Pharmaceuticals' stock dropped 44% in 2025, but its AI-powered drug discovery platform, Recursion OS, is poised to provide stronger technological proof in 2026, driving revenue growth.
- Future Revenue Expectations: Analysts forecast Recursion's revenue to reach $83 million in 2026, significantly up from $63 million in 2025, which will help reduce the company's losses and enhance its business viability.
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Analyst Views on DKNG
Wall Street analysts forecast DKNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DKNG is 43.76 USD with a low forecast of 30.00 USD and a high forecast of 63.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
23 Buy
7 Hold
0 Sell
Strong Buy
Current: 30.120
Low
30.00
Averages
43.76
High
63.00
Current: 30.120
Low
30.00
Averages
43.76
High
63.00
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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