DraftKings shares volatile as investors weigh prediction market growth against profitability risks
Key takeaways
- The analysts wrote that DraftKings shares have swung between an intraday low of $23.50 and a high of $30 since May, before easing back to around $25, or roughly 17% below recent highs.
- They wrote that the move reflects a growing debate among investors around prediction market volumes, core sports betting trends, and valuation, particularly ahead of major sporting events.
- Despite the higher TAM assumption, the firm made no changes to its earnings estimates and maintained a Neutral rating on the stock.
Draft Kings shares volatile as investors weigh prediction market growth against profitability risks Proactive Fri, June 26, 2026 at 12:23 AM GMT+7 2 min read DKNG BAC Draft Kings shares volatile as investors weigh prediction market growth against profitability risks Proactive uses images sourced from Shutterstock Draftkings Inc (NASDAQ:DKNG) shares have been volatile over the past month as investors continue to weigh the potential impact of prediction markets on the company's growth outlook, according to Bank of America.
The analysts wrote that DraftKings shares have swung between an intraday low of $23.50 and a high of $30 since May, before easing back to around $25, or roughly 17% below recent highs. Shares were down another 4% at about $23.50 on Thursday.
They wrote that the move reflects a growing debate among investors around prediction market volumes, core sports betting trends, and valuation, particularly ahead of major sporting events.