DraftKings

DKNG

Market cap $17.6B

DraftKings is undervalued due to misplaced negative sentiment from Macau casino closures and prediction market headlines, despite no direct exposure. DKNG's core strength lies in growing parlay bet volumes, robust revenue growth, and a strong cash position, supporting long-term fundamentals. Valuation is attractive versus FanDuel, with DKNG trading at a discount despite similar market dominance and monetization potential from parlays.

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.

Not every growth stock has gone straight up this year, but that could set some stocks up well to be winners next year.

DraftKings' much-needed correction to my Buy Zone at the established 2024/ 2025 trading support at $33s is finally here, as the market overreacts to the prediction markets' success. Given Kalshi's ongoing legal headwinds, I believe that DKNG's position as the second largest iGaming player and the legal sports betting licenses in the US have been overly discounted. This is especially since the American Gaming Association is already reporting growing iGaming revenues in the US, nearly tripled compared to Q2'21 levels.

In the latest trading session, DraftKings (DKNG) closed at $32.68, marking a -7.16% move from the previous day.

Gambling powerhouse DraftKings Inc. NASDAQ: DKNG is flashing a rare signal that investors typically only see a handful of times in a stock's lifetime. Its Relative Strength Index (RSI), a key measure of momentum, has collapsed below 15, marking the lowest reading in company history.

DraftKings (DKNG 3.59%) has been on the losing side of the market lately, sliding by nearly 40% from the 52-week peak it reached in early 2025. The drop hasn't been about poor execution or slowing demand, but instead, the rise of sports-related prediction markets.

Draftkings Inc (NASDAQ:DKNG) stock is now a ‘Buy' according to the equity research analysts over at Berenberg.  They believe the 20% plus sell off in the company's stock over the past 10 days due to the threat of disruption from prediction markets has been overdone.

September was the month when the new National Football League (NFL) season kicked into high gear. However, you might not know that from the performance of a company eagerly courting the league's many bettors -- next-generation wager specialist DraftKings (DKNG 3.13%).

Kalshi and Polymarket could pose an existential threat to sports-betting companies.