Copyright Benzinga
Sports betting giant DraftKings Inc (NASDAQ:DKNG) reported mixed results for the third quarter on Thursday. An analyst breaks down what the results mean and what's next for the company. • Track the latest developments with DKNG stock here. The DraftKings Analysts: Citizens analyst Jordan Bender maintained a Market Outperform rating on DraftKings with a price target of $51. Read Also: PENN Entertainment Reports Q3 Results, Terminates Sports Betting Partnership With ESPN The Analyst Takeaways: Bender said when it comes to the third quarter for DraftKings, "sports betting not so great," in a new investor note. "There is no way to describe the sports betting result in the quarter other than ugly," Bender said. The analyst said it appears DraftKings increased its promotional spending, while its outcomes went the wrong way. The items taken together led to lower EBITDA. "The company missed sports revenue expectations by 16%." Bender said iGaming was a positive in the quarter with revenue up 25% year-over-year, beating expectations. DraftKings lowered full-year guidance for revenue and EBITDA after the quarterly results. The analyst said results for the sports betting industry have been worse than expected for NFL games in the fourth quarter. Potential positives for DraftKings ahead include a new deal with ESPN and the launch of a new prediction market. Increased betting handle trends for NFL and NBA for their seasons also is mentioned as a positive item to watch by the analyst. "We believe these results and lower estimates for 2025/2026 could be the clearing event for the stock to find a floor." DKNG Price Action: DraftKings stock is up 4.79% on Friday, with shares hitting new 52-week lows of $26.23 earlier in the intraday trading session. DraftKings shares are down 22% year-to-date in 2025. Read Next:
