Key Stats for DraftKings Stock
- Current Price: $20.94
- Street Target: ~$34
- Q3 2026 EBITDA Consensus: ~-$49 million
- 2027 EBITDA Consensus: ~$1.12 billion
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What Happened?
DraftKings (DKNG) has guided to $700 million to $900 million of 2026 adjusted EBITDA since February and reaffirmed the range on August 6. TIKR’s consensus sits around $667 million, below that floor.
On October 21, DraftKings set its third-quarter report for after the close on November 5. Management has promised a 2027 update on the November 6 call. Shares rose about 2% to $20.94 on October 22.
Robins Says 2027 Spending Could Come Down
At the Wells Fargo Consumer Conference on September 22, CEO Jason Robins was asked whether extra 2026 spending on DraftKings’ Predictions product would raise 2027 costs. He first said, “It’s too early to say,” then leaned: “I definitely wouldn’t look at it as we’re spending more now, therefore, we’re going to be spending more next year. I think if anything, it’s probably the opposite.”
The Street is already modeling a weak 2026 and a sharp rebound:
- Q3 2026: an EBITDA loss of around $49 million, narrower than the $126.49 million loss a year earlier.
- Q4 2026: around $432 million.
- 2027: consensus EBITDA up around 69% to about $1.12 billion.
Spending is not the only drag. Management attributed about $80 million of second-quarter revenue pressure to customer-friendly sports outcomes. In the same September remarks, Robins put the core business on track for about $1 billion of 2026 adjusted EBITDA, a split TIKR covered in September. Longer term, he still targets an adjusted EBITDA margin of around 30% in existing states, plus or minus a couple of hundred basis points.
TIKR tracks 37 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
Combos and Cross-Sell Are the Evidence Nobody Is Pricing
Robins gave two data points in September that received far less attention than his spending comments.
The first is combos, which let customers combine several markets into one position. They reached almost 30% of the Predictions mix on Sunday, September 20. Sportsbook took more than five years to reach that level.
The second is cross-sell. DraftKings is moving double-digit percentages of Predictions customers onto Pick6, Lottery, and daily fantasy. That gives it somewhere to keep customers if sports contracts are pulled, and the legal fight is moving:
- New Jersey has asked the Supreme Court to let states apply gambling laws to Kalshi’s sports contracts.
- 38 other states, Washington, D.C., and the NFL back the petition.
- As of October 22, the Court had not said whether it will hear the case.
A ruling against sports contracts would hit Kalshi, a direct competitor, as well as DraftKings’ own Predictions product.
Robins returned to the theme at the NEXTPredict Summit in New York on October 22. He said DraftKings’ exchange is “already the clear number three” a few months after launch, behind Kalshi and Polymarket. He also said the company “might not really get full credit until there’s a Supreme Court ruling.” All of these are executive remarks.
What the TIKR Data Says About the Price
- NTM EV/EBITDA: ~13x (Flutter: ~9x, as of October 21)
- NTM P/E: ~20x (Flutter: ~14x, as of October 21)
- Current EV / 2027 EBITDA Consensus: ~10x
- Street Mean Target: ~$34 (range: $20 to $76)
- Ratings: 26 Buy, 5 Outperform, 5 Hold, 1 Underperform
DraftKings trades at a premium to Flutter Entertainment (FLUT), which is also spending on its FanDuel Predicts product. On 2027 estimates, DraftKings’ multiple falls to about 10x.
The direction of estimates is the catch:
- 2026 revenue consensus is around $6.7 billion, down from around $7.5 billion at the end of September 2025.
- The mean target has slipped to around $34 from around $44 at the end of 2025.
The 2027 Number Decides Whether Robins Was Right
- A 2027 framework near $1.1 billion, with Predictions spending flat or lower, would support Robins’ claim.
- A third-quarter loss far wider than ~$49 million would suggest the spending ran ahead of plan.
- A 2027 outlook under $1 billion would mean the 2026 spending was an added cost, not a pull-forward.
So what is DraftKings stock actually worth?
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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 stocks mentioned. Thank you for reading, and happy investing!
