Should You Buy Draftkings Inc (DKNG) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
30.120
1 Day change
0.03%
52 Week Range
53.610
Analysis Updated At
2026/01/28
BUY for a beginner long-term investor at current ~$30.2. The stock is technically washed-out/near support after a sustained downtrend, options positioning is notably bullish (low put/call ratios), and near-term demand catalysts (Super Bowl betting + continued online betting growth narrative) can support a rebound into earnings (2026-02-12). Key risk is the still-bearish trend (price below major moving averages) and profitability pressure, but at this level the risk/reward is attractive for an impatient long-term buyer.
Technical Analysis
Trend/levels: DKNG remains in a bearish trend with bearish moving average stack (SMA_200 > SMA_20 > SMA_5), meaning the broader trend is still down.
Momentum: MACD histogram is negative (-0.532) but negatively contracting, suggesting downside momentum is easing (selling pressure may be fading).
RSI: RSI_6 = 25.668, which is effectively near-oversold conditions (often associated with bounce potential even if the primary trend is down).
Support/Resistance: Price (~30.19 post-market) is sitting right on S1 (30.217) and just above S2 (28.745). Near-term resistance is Pivot 32.601, then R1 34.985.
Interpretation: This is not a confirmed trend reversal yet, but it is a technically reasonable long-term entry area because price is pressing support with signs of slowing downside momentum.
Intellectia Proprietary Trading Signals
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock recently.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment: Both the open interest put/call (0.45) and volume put/call (0.26) are meaningfully below 1.0, signaling bullish positioning (calls outweigh puts).
Activity: Today’s options volume is elevated versus the 30-day average ("option_volume_today_vs_volume_avg_30_day": 29.48), indicating heightened attention/positioning.
Volatility: IV is high (30d IV ~55.93) and IV percentile is elevated (77.2), implying the market is pricing meaningful moves (often around catalysts like earnings and major sports-betting events). Net takeaway: options markets lean bullish, but expect bigger-than-normal swings.
Technical Summary
Sell
9
Buy
4
Positive Catalysts
- Super Bowl betting demand tailwind: projected $1.75B legal betting volume (+10%+ YoY) can support operator engagement and near-term sentiment.
- Industry evolution: continued rollout of prediction-style products indicates new product/market opportunities (even if competitive).
- Earnings catalyst ahead: QDEC 2025 earnings on 2026-02-12 (after hours) with EPS estimate shown as positive (Est: 0.28), which can act as a sentiment trigger.
- Wall Street still broadly constructive: multiple Overweight/Buy/Positive stances with price targets well above the current ~$30 level.
Neutral/Negative Catalysts
- Primary trend still bearish: price is below key moving averages (SMA_200 > SMA_20 > SMA_5), so rallies can fail until trend improves.
- Profitability/margins pressure: latest reported quarter shows wider losses and lower margins (see financials).
- Competitive and regulatory risks highlighted by analysts: promotional reinvestment, potential online gaming tax increases in some states, and uncertainty around hold/win-rate dynamics.
- Elevated implied volatility: market is expecting big moves; downside gaps are possible around earnings/news.
Financial Performance
Latest quarter provided: 2025/Q3.
- Revenue: $1.144B, +4.43% YoY (continued top-line growth, but not rapid).
- Net income: -$256.8M (loss widened; down -12.56% YoY).
- EPS: -$0.52, down -13.33% YoY.
- Gross margin: 31.46%, down -2.39% YoY.
Takeaway: Growth continues, but profitability and margin trends weakened in 2025/Q3, which helps explain the cautious tone and recent target trims. The next major checkpoint is QDEC 2025 earnings on 2026-02-12.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: price targets have been mixed but skewed to trims/neutrality recently, while many firms still maintain constructive ratings.
- Target cuts with still-positive stances: Susquehanna to $44 (Positive), JPMorgan to $41 (Overweight), Truist to $43 (Buy), Mizuho previously cut to $46 (Outperform).
- Target raises/constructive: Morgan Stanley raised to $53 (Overweight); BTIG raised to $45 (Buy).
- More cautious/neutral initiations: Texas Capital Hold $39; Wells Fargo Equal Weight $31; BofA Neutral $37.5.
Wall Street pros: Long runway for online sports betting; potential earnings beats in digital; targets imply substantial upside from ~$30.
Wall Street cons: Near-term volatility, heavier promos/reinvestment, hold-rate skepticism, prediction-market launch/execution risk, and possible tax headwinds.
Influential/political trading: No recent congress trading data available; hedge funds and insiders show neutral recent activity.
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 USD and a high forecast of 63 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
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 USD and a high forecast of 63 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.
23 Buy
7 Hold
0 Sell
Strong Buy
Current: 30.110
Low
30
Averages
43.76
High
63
Current: 30.110
Low
30
Averages
43.76
High
63
Susquehanna
Positive
downgrade
$48 -> $44
AI Analysis
2026-01-27
New
Reason
Susquehanna
Price Target
$48 -> $44
AI Analysis
2026-01-27
New
downgrade
Positive
Reason
Susquehanna lowered the firm's price target on DraftKings to $44 from $48 and keeps a Positive rating on the shares. The firm updated its model where they increased estimates for Q4 due to notable year-over-year hold gains but lowered for 2026 to reflect stepped up promotional reinvestment in 2026.
JPMorgan
Overweight -> NULL
downgrade
$42 -> $41
2026-01-23
Reason
JPMorgan
Price Target
$42 -> $41
2026-01-23
downgrade
Overweight -> NULL
Reason
JPMorgan lowered the firm's price target on DraftKings to $41 from $42 and keeps an Overweight rating on the shares. The firm adjusted targets in the gaming space as part of a Q4 earnings preview. Gaming stocks "are carrying a lot of baggage and negativity," so investors should be selective, the analyst tells investors in a research note. JPMorgan believes digital is the segment with the greatest opportunity for earnings beats.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for DKNG
