Not a good buy right now for an impatient investor: trend is still bearish and the stock is trading below key resistance/pivot (~29.10) with weak momentum.
Options market is positioned bullish (call-heavy) but implied volatility is extremely elevated into earnings (2026-02-12 AH), meaning price swings are likely and timing risk is high.
Near-term catalysts skew mixed-to-negative (prediction-market regulatory scrutiny + gambling handle slowdown narrative), while analyst targets have been cut broadly despite mostly positive ratings.
Best stance right now: wait/hold off until DKNG reclaims the pivot (~29.10) or post-earnings volatility clears; buying here is a lower-quality entry.
Technical Analysis
Trend/MAs: Bearish alignment (SMA_200 > SMA_20 > SMA_5) indicates the dominant trend is still down.
Momentum (MACD): Histogram is negative (-0.567) but contracting, suggesting downside momentum is slowing (possible bounce setup, not a confirmed reversal).
RSI(6): 21.46 (functionally oversold), which can support a short-term rebound, but oversold can persist in downtrends.
Key levels: Support S1 ~26.53 (price 26.82 is sitting just above it); if it breaks, next support S2 ~24.95. Resistance/pivot ~29.10, then R1 ~31.66.
Pattern-based odds: Similar-pattern stats imply weak near-term expectancy (next week -3.15% median-like outcome), reinforcing that the trend is not yet favorable.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Positioning/Sentiment: Put-call ratios are low (0.53 OI, 0.22 volume) -> call-heavy flow and bullish skew.
Volatility: IV30 ~69% vs historical vol ~46% with IV percentile ~94.8 -> options are pricing very large moves (typical into earnings/event risk).
Activity: Today’s volume (24,958) is below 5D/10D averages, but open interest is large (682,999), suggesting meaningful outstanding positioning.
Trading implication: Bullish sentiment is present, but “expensive options” reflect elevated event risk; directional buys at spot can still face sharp drawdowns around earnings/regulatory headlines.
Technical Summary
Sell
9
Buy
4
Positive Catalysts
Earnings catalyst: QDEC 2025 earnings on 2026-02-12 (AH); any upside on hold rates, iGaming rebound, or guidance could drive a sharp relief rally given depressed sentiment.
Some analysts see a favorable setup after valuation reset and de-risked FY26 expectations (multiple Buy/Overweight ratings remain).
Event tailwinds discussed by Street: potential boosts from major sports cycles (e.g., Olympics/World Cup) and market share momentum (e.g., NBA handle share commentary).
Neutral/Negative Catalysts
and under bearish moving averages—trend remains down until reclaimed.
Financial Performance
Latest reported quarter: 2025/Q3.
Revenue: $1.144B, up +4.43% YoY (growth positive but not accelerating strongly in this snapshot).
Profitability: Net income -$256.8M (loss widened, -12.56% YoY) and EPS -0.52 (down -13.33% YoY) -> losses deepened.
Takeaway: Top-line growth continues, but profitability and margin trend were negative in the latest quarter provided, which limits “buy now” conviction into earnings.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: Price targets have mostly been reduced across firms in late Jan/early Feb (e.g., Canaccord 54->50; Stifel 46->44; Guggenheim 45->42; Susquehanna 48->44; JPM 42->41; Truist 45->43), reflecting tempered near-term expectations.
Ratings: Despite target cuts, the majority remain constructive (multiple Buys/Overweight/Positive); a minority are Neutral/Hold.
Wall Street pros: Reset expectations/valuation, potential for earnings beats in digital gaming, event tailwinds (sports calendar), and selective preference for DKNG vs peers.
Wall Street cons: Handle deceleration narrative, higher promo reinvestment risk, prediction-market/regulatory uncertainty, and potential state tax pressure.
Influential/political trades: No recent congress trading data available; hedge funds/insiders reported as Neutral with no significant recent trend.
Wall Street analysts forecast DKNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DKNG is 43.76 USD with a low forecast of 30 USD and a high forecast of 63 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
Wall Street analysts forecast DKNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DKNG is 43.76 USD with a low forecast of 30 USD and a high forecast of 63 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Buy
7 Hold
0 Sell
Strong Buy
Current: 25.520
Low
30
Averages
43.76
High
63
Current: 25.520
Low
30
Averages
43.76
High
63
Bernstein
Outperform
to
NULL
downgrade
$41 -> $32
AI Analysis
2026-02-06
New
Reason
Bernstein
Price Target
$41 -> $32
AI Analysis
2026-02-06
New
downgrade
Outperform
to
NULL
Reason
Bernstein lowered the firm's price target on DraftKings to $32 from $41 and keeps an Outperform rating on the shares ahead of quarterly results. The firm expects the company to print strong Q4 results this month, underpinned by favorable sports results. However, this alone, Bernstein believes, would do little to mollify investor concerns around challenges into 2026.
The Bear Cave
The Bear Cave
maintain
2026-02-05
New
Reason
The Bear Cave
The Bear Cave
Price Target
2026-02-05
New
maintain
Reason
DraftKings has underperformed, falling roughly 36% since The Bear Cave's initial coverage, as competitive threats from prediction markets like Kalshi intensify, the firm says in a research note. Kalshi's superior execution, broader reach, and effective growth strategies are putting long-term pressure on DraftKings' business model, The Bear Cave argues.
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