DraftKings Shares Are Falling Today – Here’s Why

Analysts from Stifel, JPMorgan and Guggenheim have slashed their price target on Draftkings ahead of its Q4 earnings due Monday.

• Stifel lowered the firm's price target on DraftKings to $44 from $46.
• Guggenheim has also lowered the firm's price target on DraftKings to $42 from $45.
• JPMorgan said that Gaming stocks "are carrying a lot of baggage and negativity," so investors should be selective. 

Shares of DraftKings fell more than 6% on Friday after several analysts slashed their price targets on the stock ahead of its expected fourth quarter (Q4) earnings results on Monday. 

Price Cuts

Stifel lowered the firm's price target on DraftKings to $44 from $46 and kept a ‘Buy’ rating on the shares.

The firm said it has approached Q4 earnings for the online gambling group cautiously despite mostly attractive valuations, noting that it tactically favors DraftKings in the near-term given NBA handle share momentum, de-risked consensus FY26 (fiscal year 2026) estimates, potential upside from the Winter Olympics and World Cup. 

Guggenheim also lowered the firm's price target on DraftKings to $42 from $45 and kept a ‘Buy’ rating on the shares after updating the firm's model for Q4 and "an initially more conservative" 2026 outlook. 

Given recent guidance challenges, it would be prudent for DraftKings to start 2026 in "a very reasonable zone and hopefully exceed expectations throughout the year," the analyst said in a note. 

JPMorgan last week also lowered the firm's price target on DraftKings to $41 from $42 and kept an ‘Overweight’ rating on the shares. 

Gaming stocks "are carrying a lot of baggage and negativity," so investors should be selective, the analyst said. 

Upcoming Q4 Earnings

Draftkings is expected to post a revenue of $1.97 billion in Q4, according to data from fiscal.ai. 

It had missed analyst estimates for third quarter revenue. 

The company is also expected to report a  profit of $0.12 per share in the quarter. It posted a loss of $0.28 per share in the corresponding quarter of 2024. 

How Did Stocktwits Users React?

Retail sentiment around DKNG trended in ‘neutral’ territory amid ‘high’ message volume. 

One user said that the gaming segment “is filled with too much risk from all angles.” 

“And it’s a low margin business to be home with. Risk reward is not in the bulls camp,” they added.

One bullish user said that they are adding more of Draftkings stock amid the selloff.

Shares in the company have fallen 34% over the past 12 months.