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DraftKings (DKNG) Stock Forecast for 2024, 2025, 2026. Sell or Buy?
Updated: September 21, 2024 (00:38)
Sector: FinancialThe share price of DraftKings Inc. (DKNG) now
Analysts predictions
Full report|
This Week
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Neutral | Opinions: Na |
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Previous Week
|
Neutral | Opinions: Na |
|
Two Weeks Ago
|
Bullish | Opinions: 4 (3/0/1) |
|
Three Weeks Ago
|
Neutral | Opinions: Na |
Are you interested in DraftKings Inc. stocks and want to buy them, or are they already in your portfolio? If yes, then on this page you will find useful information about the dynamics of the DraftKings stock price in 2024, 2025, 2026, 2027, 2028. How much will one DraftKings share be worth in 2024 - 2028?
When should I take profit in DraftKings stock? When should I record a loss on DraftKings stock? What are analysts' forecasts for DraftKings stock? What is the future of DraftKings stock? We forecast DraftKings stock performance using neural networks based on historical data on DraftKings stocks. Also, when forecasting, technical analysis tools are used, world geopolitical and news factors are taken into account.
DraftKings stock prediction results are shown below and presented in the form of graphs, tables and text information, divided into time intervals. (Next month, 2024, 2025, 2026, 2027 and 2028) The final quotes of the instrument at the close of the previous trading day are a signal to adjust the forecasts for DraftKings shares. This happens once a day.
Historical and forecast chart of DraftKings stock
The chart below shows the historical price of DraftKings stock and a prediction chart for the next month. For convenience, prices are divided by color. Forecast prices include: Optimistic Forecast, Pessimistic Forecast, and Weighted Average Best Forecast. Detailed values for the DraftKings stock price can be found in the table below.
Long-term forecasts by years.
DraftKings Inc. Analysts predictions review
As of now, Panda has combed through 4 analytical articles which are directly related to DKNG from the last 30 days. Out of these, 3 clearly showcase a bullish trend, while 1 see a bearish trend as the more likely scenario, and 0 stay neutral.
To identify the dominant trend, we took into account analytical articles from the past 30 days, spanning from Sep 03, 2024 to Sep 05, 2024.
DraftKings Faces Profitability Hurdles Amid High Costs and Intense Competition
In a recent analytical financial article, Harrison Schwartz maintains a Bearish stance on DKNG stock, underscoring a critical view of its current market positioning. Since joining the platform in 2018, Schwartz has authored an impressive 1053 publications, quickly becoming a prolific and influential figure in financial analysis. With 15,744 subscribers, his insights are both highly sought after and respected within the investment community. His exceptional credibility is a testament to the depth and reliability of his analyses. Given these credentials, Schwartz's bearish outlook on DKNG stock warrants serious consideration from investors and market watchers alike.
Key Theses
- DraftKings faces challenges in customer retention and profitability due to high customer acquisition costs and competition.
- Regulatory risks and economic headwinds threaten DraftKings' long-term profitability.
- The company's liquidity is dwindling, further pressuring profitability.
- Despite a bearish outlook, shorting DKNG stock is risky due to potential investor optimism and uncertain economic impacts on gambling behavior.
Factors Influencing DKNG Stock Price
High Customer Acquisition Cost (CAC)
DraftKings' high CAC reduces profitability since the cost of acquiring customers often outweighs their long-term value. This issue is exacerbated by intense competition from companies like FanDuel and BetMGM.
Regulatory Risks
Potential tax increases, like the 40% tax in Illinois, could further cut into DraftKings' earnings. Additional states considering similar taxes could amplify this negative impact.
Economic Headwinds
Low personal savings rates and economic uncertainty may diminish disposable income available for sports betting. This reduces overall betting activity and customer retention.
Liquidity Position
DraftKings' cash and short-term investments have dropped significantly, potentially affecting its ability to invest in new customer acquisition without external funding. This factor is less immediate but could become urgent if liquidity does not improve.
Competitive Environment
With competitors like FanDuel offering better odds and BetMGM ramping up CAC spending, maintaining market share becomes increasingly difficult. This intense competition reduces customer loyalty and decreases long-term revenues per customer.
Investor Sentiment and Market Trends
Short-term investor sentiment can significantly sway stock prices, especially in high-growth industries. Investor optimism driven by lower CAC costs could uplift DKNG's stock price, despite underlying issues.
Review the original Analysis
DraftKings: Strategic Moves Lay Groundwork Amid Short-Term Headwinds
In this review, we delve into Juxtaposed Ideas' analytical financial article, where the author maintains a bullish stance on DKNG stock. With a robust track record of 1,040 publications since joining as a contributor in 2022, Juxtaposed Ideas has quickly garnered significant popularity and credibility, attracting a substantial subscriber base of 11,871. This author’s viewpoints are highly authoritative and trusted within the financial community. Given their prolific output and high engagement levels, Juxtaposed Ideas offers an insightful and well-founded perspective on DKNG stock’s potential, making this review a must-read for investors seeking informed financial analysis.
Key Theses from the Review
- DraftKings' FY2024 guidance has been lowered, affecting stock performance and investor confidence.
- Recent acquisitions, such as Jackpocket, Inc., are not immediately profitable, contributing to a mixed near-term outlook.
- Management has announced a $1B share repurchase authorization, indicating confidence in long-term prospects despite negative cash flows.
- The investment thesis for DraftKings remains intact with significant long-term upside potential, despite mixed FQ2'24 results.
Key Factors Influencing DKNG Stock Price
Lowered FY2024 Guidance
The reduction in FY2024 guidance directly impacts investor confidence and the stock's short-term price, as it signals potential headwinds. With the guidance lowered to $380M, investor expectations have been recalibrated, causing a decrease in stock performance.
Recent Acquisitions (e.g., Jackpocket, Inc.)
The acquisitions are not immediately accretive to the bottom line, increasing concerns about the balance sheet. This has led to a deteriorating net cash position, raising questions about near-term profitability.
$1B Share Repurchase Authorization
The share repurchase program signals management's confidence in the long-term health of the company. However, the negative cash flows raise questions about the sustainability of such moves.
Maintaining Leading Market Share
DraftKings continues to hold a leading market share of 32% in the US, indicating its robust market position. This ongoing dominance supports the long-term investment thesis and potential for sustained growth.
New Customer Growth & Reduced CAC
The growth in new online sports betting and iGaming customers by nearly 80% YoY, while reducing Customer Acquisition Costs by over 40%, indicates efficient growth strategies. This positive trend can uplift future profitability and stock price.
Failed Gaming Tax Surcharge
Failing to implement the gaming tax surcharge in high-tax states may impact future profitability. Investors will need to monitor how DKNG aims to offset higher costs, which could affect near-term stock performance.
Review the original Analysis Commentary
DraftKings struggles with lowered FY2024 guidance and non-immediate returns from acquisitions, but these short-term challenges don't overshadow the potential for long-term growth. The share buyback program underlines management's confidence, suggesting that the stock's current dip might be temporary. Maintaining a leading market share of 32% in the US, coupled with efficient growth strategies evidenced by an 80% increase in new customers and reduced acquisition costs, gives reason for optimism.
The average influence strength of the key factors points toward a positive, yet cautious outlook. In the next 15 days, the mixed signals from lowered guidance and recent acquisitions could cause volatility, possibly exerting downward pressure. However, the long-term indicators like market dominance and efficient customer acquisition hint at recovery and growth over the coming month. Thus, while short-term prospects are mixed, the overall trend seems bullish.
DraftKings Inc. operates as a digital sports, entertainment and gaming company in the United States. The company provides users with daily opportunities for sports, sports betting and iGaming. She is also involved in the design and development of sports betting and casino gaming platform software for online and retail bookmakers, as well as casino gaming products. The company distributes its product offerings through a variety of channels, including traditional websites, direct app downloads, and direct-to-consumer digital platforms. DraftK ings Inc. headquartered in Boston, Massachusetts.
DraftKings daily forecast for a month
| Date | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Sep 22 | 40.69 | 40.30 | 41.47 | 2.91 |
| Sep 23 | 40.28 | 39.14 | 41.35 | 5.64 |
| Sep 24 | 41.09 | 40.76 | 42.40 | 4.03 |
| Sep 25 | 41.45 | 40.32 | 42.21 | 4.69 |
| Sep 26 | 41.07 | 40.48 | 41.51 | 2.56 |
| Sep 27 | 41.50 | 40.52 | 41.88 | 3.36 |
| Sep 28 | 41.13 | 39.83 | 41.69 | 4.67 |
| Sep 29 | 40.70 | 40.23 | 41.37 | 2.83 |
| Sep 30 | 41.66 | 41.11 | 42.30 | 2.88 |
| Oct 01 | 41.21 | 40.52 | 41.74 | 3.01 |
| Oct 02 | 40.44 | 40.05 | 41.15 | 2.75 |
| Oct 03 | 41.02 | 39.94 | 41.56 | 4.07 |
| Oct 04 | 40.50 | 39.77 | 41.05 | 3.22 |
| Oct 05 | 40.96 | 39.95 | 41.75 | 4.51 |
| Oct 06 | 41.72 | 41.18 | 42.30 | 2.71 |
| Oct 07 | 42.24 | 41.66 | 42.71 | 2.51 |
| Oct 08 | 42.68 | 42.20 | 43.20 | 2.39 |
| Oct 09 | 43.22 | 41.99 | 43.58 | 3.79 |
| Oct 10 | 41.56 | 40.80 | 42.51 | 4.20 |
| Oct 11 | 40.95 | 40.41 | 41.83 | 3.53 |
| Oct 12 | 40.49 | 39.94 | 41.65 | 4.30 |
| Oct 13 | 40.81 | 39.54 | 41.37 | 4.62 |
| Oct 14 | 40.67 | 39.59 | 41.12 | 3.86 |
| Oct 15 | 41.72 | 41.24 | 42.31 | 2.59 |
| Oct 16 | 42.01 | 40.70 | 43.01 | 5.70 |
| Oct 17 | 42.85 | 42.18 | 43.51 | 3.17 |
| Oct 18 | 42.69 | 41.53 | 43.10 | 3.78 |
| Oct 19 | 43.55 | 42.19 | 44.61 | 5.74 |
| Oct 20 | 42.90 | 42.09 | 44.19 | 4.97 |
| Oct 21 | 43.48 | 42.86 | 44.11 | 2.92 |
DraftKings Daily Price Targets
DraftKings Stock Forecast 09-22-2024.
Forecast target price for 09-22-2024: $40.69.
Positive dynamics for DraftKings shares will prevail with possible volatility of 2.826%.
Pessimistic target level: 40.30
Optimistic target level: 41.47
DraftKings Stock Forecast 09-23-2024.
Forecast target price for 09-23-2024: $40.28.
Negative dynamics for DraftKings shares will prevail with possible volatility of 5.339%.
Pessimistic target level: 39.14
Optimistic target level: 41.35
DraftKings Stock Forecast 09-24-2024.
Forecast target price for 09-24-2024: $41.09.
Positive dynamics for DraftKings shares will prevail with possible volatility of 3.876%.
Pessimistic target level: 40.76
Optimistic target level: 42.40
DraftKings Stock Forecast 09-25-2024.
Forecast target price for 09-25-2024: $41.45.
Positive dynamics for DraftKings shares will prevail with possible volatility of 4.478%.
Pessimistic target level: 40.32
Optimistic target level: 42.21
DraftKings Stock Forecast 09-26-2024.
Forecast target price for 09-26-2024: $41.07.
Negative dynamics for DraftKings shares will prevail with possible volatility of 2.493%.
Pessimistic target level: 40.48
Optimistic target level: 41.51
DraftKings Stock Forecast 09-27-2024.
Forecast target price for 09-27-2024: $41.50.
Positive dynamics for DraftKings shares will prevail with possible volatility of 3.250%.
Pessimistic target level: 40.52
Optimistic target level: 41.88
DKNG (DKNG) Monthly Stock Prediction for 2024
| Month | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Oct. | 39.01 | 36.99 | 41.93 | 11.77 |
| Nov. | 40.98 | 38.01 | 41.98 | 9.45 |
| Dec. | 39.36 | 37.59 | 41.66 | 9.77 |
DraftKings forecast for this year
DraftKings Stock Prediction for Oct 2024
An downtrend is forecast for this month with an optimal target price of $39.0108. Pessimistic: $36.99. Optimistic: $41.93
DraftKings Stock Prediction for Nov 2024
An uptrend is forecast for this month with an optimal target price of $40.9848. Pessimistic: $38.01. Optimistic: $41.98
DraftKings Stock Prediction for Dec 2024
An downtrend is forecast for this month with an optimal target price of $39.3618. Pessimistic: $37.59. Optimistic: $41.66
DraftKings (DKNG) Monthly Stock Prediction for 2025
| Month | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Jan | 38.63 | 37.48 | 40.75 | 8.03 |
| Feb | 38.16 | 35.93 | 41.31 | 13.01 |
| Mar | 40.89 | 39.76 | 42.42 | 6.26 |
| Apr | 44.44 | 41.21 | 48.06 | 14.24 |
| May | 43.95 | 41.82 | 45.64 | 8.37 |
| Jun | 44.39 | 43.17 | 46.44 | 7.04 |
| Jul | 45.26 | 41.73 | 49.05 | 14.92 |
| Aug | 40.39 | 39.05 | 42.87 | 8.91 |
| Sep | 39.14 | 37.38 | 41.08 | 9.01 |
| Oct | 40.78 | 38.49 | 42.84 | 10.16 |
| Nov | 38.62 | 37.35 | 40.79 | 8.44 |
| Dec | 38.03 | 35.81 | 40.67 | 11.93 |
DraftKings (DKNG) Monthly Stock Prediction for 2026
| Month | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Jan | 41.84 | 38.20 | 44.37 | 13.90 |
| Feb | 42.57 | 39.58 | 45.34 | 12.71 |
| Mar | 43.56 | 39.87 | 46.77 | 14.75 |
| Apr | 45.86 | 43.64 | 47.77 | 8.66 |
| May | 47.07 | 43.80 | 51.16 | 14.37 |
| Jun | 42.46 | 40.31 | 45.91 | 12.21 |
| Jul | 44.00 | 40.76 | 47.53 | 14.26 |
| Aug | 40.81 | 38.02 | 43.14 | 11.86 |
| Sep | 40.18 | 37.30 | 42.56 | 12.36 |
| Oct | 40.09 | 37.05 | 41.72 | 11.20 |
| Nov | 39.60 | 38.08 | 42.87 | 11.18 |
| Dec | 41.00 | 38.34 | 43.52 | 11.92 |
DraftKings information and performance
222 BERKELEY STREET, BOSTON, MA, US
Market capitalization of the DraftKings Inc. is the total market value of all issued shares of a company. It is calculated by the formula multiplying the number of DKNG shares in the company outstanding by the market price of one share.
EBITDA of DraftKings is earnings before interest, income tax and depreciation of assets.
P/E ratio (price to earnings) - shows the ratio between the price of a share and the company's profit
Price/earnings to growth
Dividend Per Share is a financial indicator equal to the ratio of the company's net profit available for distribution to the annual average of ordinary shares.
Dividend yield is a ratio that shows how much a company pays in dividends each year at the stock price.
EPS shows how much of the net profit is accounted for by the common share.
Trailing P/E depends on what has already been done. It uses the current share price and divides it by the total earnings per share for the last 12 months.
Forward P/E uses projections of future earnings instead of final numbers.
Enterprise Value (EV) /Revenue
The EV / EBITDA ratio shows the ratio of the cost (EV) to its profit before tax, interest and amortization (EBITDA).
Number of issued ordinary shares
Number of freely tradable shares
Shares Short Prior Month - the number of shares in short positions in the last month.
Commentary
DraftKings is navigating rough waters with high customer acquisition costs (CAC) and fierce competition from rivals like FanDuel and BetMGM. This tough landscape makes it harder for the company to turn a profit as they spend heavily to attract customers who may not deliver long-term value. The situation is exacerbated by regulatory risks, such as potential tax increases, and economic headwinds that limit disposable income for sports betting. On top of that, DraftKings' declining liquidity adds another layer of complexity, potentially hampering their ability to invest in new customer growth.
Short-term investor sentiment could throw a lifeline to DKNG’s stock, especially if perceived lower CAC signals an attractive growth opportunity. However, this optimism may fizzle out if macroeconomic pressures continue to squeeze consumer spending. Over the next 15 days, these factors combined could moderately pressure the stock due to immediate investor sentiment and market reactions. Over a month, economic and regulatory uncertainties are likely to weigh more heavily, confirming a bearish outlook overall. To summarize, DraftKings is in precarious territory, facing mounting challenges that could undermine short and long-term profitability.