DraftKings ( (DKNG) ) has fallen by -8.12%. Read on to learn why.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
DraftKings shares fell 8.12% over the past week as the sports-betting giant slid back toward its 52‑week low, pressured by weaker-than-expected betting activity and growing investor caution toward the broader gaming sector. Recent data, including softer NFL wagering, has raised doubts about near‑term growth momentum and prompted traders to lean on technical signals that currently flash “Sell,” adding to the negative sentiment.
On Wall Street, analysts responded by trimming price targets and warning that earnings estimates now carry higher risk ahead of DraftKings’ upcoming fourth‑quarter results. JPMorgan nudged its target down to $41 from $42 but kept an Overweight rating, while Northland Securities maintained a Hold with a $30 target and Benchmark reiterated a Buy at $37. The mixed tone reflects a market that remains constructive on the long‑term story but more cautious on how the next few quarters may play out.
Despite the week’s pullback and year‑to‑date decline of around 8%, the underlying analyst consensus on DraftKings remains a Strong Buy, with an average target price near $45, implying sizable upside from current levels. Several firms, including Wells Fargo and Texas Capital Securities, see the company’s digital operations as the key engine for future earnings surprises, suggesting that if DraftKings can reaccelerate betting activity and deliver on its digital potential, the recent weakness may offer an entry point rather than a lasting setback for patient investors.