DraftKings shares hit a 52-week low after the company slashed its 2026 outlook & flagged heavy prediction markets losses.
The hit
DraftKings shares fell 21.3% on Friday to a 52-week low, according to Yogonet, after the company cut its 2026 guidance & said its prediction markets business could run up to $1.05bn in combined losses through 2027. JPMorgan, UBS & Stifel all downgraded the stock following the results.
Why it matters
Stifel’s Jeffrey Stantial called DraftKings a “show-me story”, saying it could take several quarters for investor sentiment to improve regardless of the legal outcome on prediction markets. Deutsche Bank’s Steven Pizzella said trading volume increasingly appears real, but what that volume is worth & how much DraftKings keeps remains the debate.
The record
| Stifel downgrade | Cut to Hold from Buy, price target to $21 from $32 |
|---|---|
| JPMorgan downgrade | Cut to Neutral from Overweight, price target to $21 from $30, dropped from Analyst Focus List |
| UBS downgrade | Cut to Neutral from Buy, price target to $22 from $48 |
| 2026 core revenue guidance | Cut to $6.35bn-$6.55bn from $6.5bn-$6.9bn |
| 2026 adjusted EBITDA guidance | Cut to $175m-$275m from $700m-$900m |
| Prediction market customers | About 1m acquired in three months; 1.6m+ engaged this year, per DraftKings |
What happens next
Watch for DraftKings’ next earnings update on prediction market retention & trading volume as promotions ease, plus any movement on the potential Supreme Court ruling the company has factored into guidance by mid-2028.
Sources: DraftKings downgraded by JPMorgan, UBS and Stifel as prediction market losses weigh
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