DraftKings' share price has fallen 48% year to date to around $19, after the company's 2026 revenue forecast was cut to a level below market expectations. Adjusted EBITDA in the second quarter fell sharply, and analysts' average price target has been revised down to $35.
DraftKings shares have fallen 48% year to date, closing at $18.59 to around $19 on 2 October. The decline began on 13 February, when the company's 2026 revenue forecast was revised downward to a level below market expectations.
In its second-quarter results announced on 6 August, adjusted EBITDA fell sharply from $364 million in the same period of the previous year to $114.6 million, while revenue came in below the market expectation of $1.516 billion. Reports that Kalshi usage had increased also affected investor sentiment.
Analyst ratings are predominantly buys, but the average price target of $35 is well above the current share price, while TIKR's mid-case model indicates a high return based on a target of $203. The gap between the market price and the valuations produced by analytical models has attracted attention.