What Happened?
Shares of fantasy sports and betting company DraftKings (NASDAQ:DKNG) jumped 6.4% in the afternoon session after the company renewed its multi-year sports betting and daily fantasy sports partnership with the NFL ahead of the 2026 season. According to an announcement from the NFL, the league established multi-year partnerships designating DraftKings as an official sports betting operator and continuing its role as the Official Daily Fantasy Sports Partner.
The shares closed the day at $25.12, up 3.7% from the previous close.
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What Is The Market Telling Us
DraftKings’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 12.7% on the news that the company issued a disappointing financial outlook for 2026 that fell short of analysts’ expectations. DraftKings projected its 2026 revenue to be $6.7 billion at the midpoint, below the consensus estimate of approximately $7.3 billion.
The company also gave a forecast for adjusted EBITDA of $800 million at the midpoint, well under the $980.6 million analysts had anticipated. This weaker-than-expected guidance overshadowed the company’s fourth-quarter results. In the quarter, revenue grew 42.8% from the prior year to $1.99 billion, meeting expectations, but its adjusted earnings per share of $0.36 missed the consensus forecast of $0.41.
DraftKings is down 29.1% since the beginning of the year, and at $25.30 per share, it is trading 47.5% below its 52-week high of $48.23 from August 2025. Investors who bought $1,000 worth of DraftKings’s shares 5 years ago would now be looking at only $426.89.
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