Key Takeaways
- DraftKings stock is up 14% in the past week, after FanDuel owner Flutter Entertainment said prediction markets have had a limited impact on its existing bettors.
- Flutter cut its guidance, but investors cared more about its prediction-markets comments, the main worry behind DraftKings’ 33% drop this year.
- Analysts expect DraftKings’ EBITDA to jump from $660 million in 2026 to $1.13 billion in 2027.
- If DraftKings’ first 2027 outlook on Nov. 6 lands near that, the stock still looks cheap.
DraftKings (DKNG) stock is up 14% in the past week. More than 40% of that gain came on Wednesday, Nov. 4, when shares rose 6% after FanDuel owner Flutter Entertainment (FLUT) said prediction markets are having only a limited impact on its existing bettors.
Flutter’s rough quarter came with the line DraftKings bulls wanted
Flutter’s third quarter was ugly: Revenue of $3.87 billion missed estimates, it cut its 2026 guidance and paused buybacks, and FanDuel’s adjusted EBITDA fell 94% to $3 million.
But its US sportsbook beat its own expectations, and new CEO Dan Taylor wrote in his first shareholder letter that “we continue to see a limited impact from prediction markets on the betting activity of our existing customer base.”
Losing bettors to prediction markets is the fear behind DraftKings’ slide. Still, Taylor said rival prediction-market operators are already pushing up Flutter’s media costs, and Flutter plans to spend as much or more on its own prediction market in 2027.
The report has to show the bill is shrinking
DraftKings reports third-quarter results after the close on Nov. 5, with a first look at 2027 on the next morning’s call. Its 2026 guidance of $700 million to $900 million of adjusted EBITDA already absorbs $200 million to $300 million of prediction-markets spending.
Analysts expect $660 million of EBITDA this year, below the bottom of that range, and then a jump to $1.13 billion in 2027:
That jump needs the spending to come down, and CEO Jason Robins thinks it will. Asked in September whether this year’s extra spending means more in 2027, he said, “I think if anything, it’s probably the opposite.” Flutter is planning the opposite, and if DraftKings has to match it, those 2027 estimates would be at risk.
TIKR tracks 36 analysts on DraftKings. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on DraftKings, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See DraftKings’ Analyst Ratings
Cheap only if 2027 holds
Analysts have already cut their 2027 forecast to $1.71 of normalized EPS, from $2.71 at the end of September 2025. DraftKings traded at 21x forward earnings at its Nov. 2 close. After the Nov. 4 rally, it’s at about its one-year average of 22x.
At 22x, DraftKings looks cheap for earnings analysts expect to double, as long as it keeps its 2026 guidance and puts 2027 EBITDA near the Street’s $1.13 billion.
Of course, if the 2027 outlook lands well short of $1 billion, or DraftKings’ spending plan looks more like Flutter’s, this week’s gain could disappear quickly.
So what is DraftKings stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what DraftKings could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
