DraftKings shares fall 27% on prediction-market spend
DraftKings’ 2027 forecast missed estimates, dragging Flutter & Penn lower too.
The hit
DraftKings stock fell 27% to $17.13 on 6 November, according to 24/7 Wall St, after the company’s third-quarter results & first 2027 forecast missed Wall Street’s expectations. Flutter Entertainment fell 8% & Penn Entertainment dropped 4% in sympathy.
Why it matters
DraftKings is spending heavily on its Predictions event-contract product to compete with Kalshi & Polymarket. According to 24/7 Wall St, traders appear to be applying DraftKings’ warning to Flutter, its closest rival. Penn beat earnings estimates on 5 November, & the company’s Aaron LaBerge said, “We’re not getting sucked into the noise of prediction markets.”
The record
| DraftKings 2026 adjusted EBITDA guidance cut | to $175m-$275m, from $700m-$900m (DraftKings) |
|---|---|
| Predictions investment driving the cut | $650m-$700m (DraftKings) |
| DraftKings 2027 EBITDA guidance vs Wall Street estimate | $800m-$1bn guided vs $1.12bn expected (Bloomberg-surveyed analysts) |
| Flutter’s Brazil-related impairment | $873m non-cash charge, reported 4 November (Flutter) |
| DraftKings cash position through the investment cycle | held near $1.1bn (DraftKings) |
| DraftKings stock year-to-date decline | down 50% (24/7 Wall St) |
What happens next
Watch Flutter’s Q4 2026 results & strategy update in February for how its outlook compares with DraftKings’. Management’s base case assumes a US Supreme Court ruling on sports prediction contracts in mid-2028.
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