The stock of online sports betting platform DraftKings (DKNG) has clawed its way back from a 10% decline after its latest financial results were made public and turned positive on Nov. 7.
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DKNG stock had been down sharply in premarket trading after the company reported third-quarter financial results that missed Wall Street’s forecasts across the board. However, investors appear to have had second thoughts about the shares and were bidding them up 2% in afternoon trading.
The rise in DKNG stock is also notable coming as it does on a day when all three major U.S. indices are deeply in the red, with the technology-laden Nasdaq index on which DraftKings trades down 350 points of 1.50%. Despite the bounce higher on Nov. 7, DraftKings’ share price is down 21% on the year.
Big Miss
DraftKings third-quarter print was disappointing across the board, with the Boston-based company announcing an earnings per share (EPS) loss of $0.52, which was greater than the loss of $0.43 expected on Wall Street.
Revenue for the quarter totaled $1.14 billion, which was below Wall Street’s estimate of $1.20 billion. Guidance wasn’t much better, with management forecasting full-year 2025 sales of $5.9 billion to $6.1 billion. Wall Street has forecast $6.19 billion in sales for the company.
Is DKNG Stock a Buy?
The stock of DraftKings has a consensus Strong Buy rating among 26 Wall Street analysts. That rating is based on 23 Buy, two Hold, and one Sell recommendations issued in the last three months. The average DKNG price target of $49.16 implies 70.69% upside from current levels. These ratings might change after the company’s latest financial results.
