DraftKings

DKNG

Market cap $12.2B

The legal sports betting market is under attack from prediction markets like Kalshi and PolyMarket, which offer traders contracts on everything from pro sports games to election outcomes to temperature highs in specific cities.

States and the federal government are locked in a battle over who has the right to regulate prediction markets. But prediction market players are continuing to invest in their businesses despite the legal uncertainty, based on comments made by management during company earnings calls.

Zacks.com users have recently been watching DraftKings (DKNG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

The average of price targets set by Wall Street analysts indicates a potential upside of 34% in DraftKings (DKNG). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

The expansion of prediction markets is hurting DraftKings (DKNG +3.24%) in the near term.

DraftKings NASDAQ: DKNG is positioning prediction markets as a major growth opportunity while maintaining that its core online sports betting and iGaming businesses remain strong, according to comments made during a fireside discussion hosted by MoffettNathanson analyst Robert Fishman.

The Nevada Gaming Commission sued the company over its sports event contracts, and the platform was briefly barred from operating in the state earlier this year, according to Barron's.

DraftKings Inc. (DKNG) Presents at MoffettNathanson's Media, Internet & Communications Conference Transcript

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced that Alan Ellingson, the Company's Chief Financial Officer, will participate in the following event: The MoffettNathanson's Media, Internet & Communications Conference on May 14, 2026. The fireside chat is scheduled for 2:15PM ET. Registration and the live audio portion of the MoffettNathanson Media, Internet & Communications Conference can be accessed at DraftKings' Investor Relation.