At least one insider at DraftKings expects a turnaround from the stock’s recent hammering.
Director Harry Sloan paid nearly $2.2 million to buy 100,000 DraftKings shares on the open market Tuesday, at an average price of $21.85 each. He bought the stock in multiple transactions at prices between $21.76 and $22.00.
DKNG saw its stock fall nearly 14% on Friday on more than five times its average volume. The drop started Thursday after its 2025 earnings were released and continued through Friday despite positive commentary from the company on its earnings call.
The dip was sharp, dropping the stock down to levels not seen since May 2023, but it already appears to be correcting. DKNG closed up 3.8% on Tuesday and was in the green again early Wednesday.
DraftKings mostly fell on guidance
The market took particular issue with guidance DraftKings issued for 2026.
DraftKings had projected adjusted EBITDA between $900 million and $1 billion in 2025, but ended the year with $620 million. This year’s guidance for adjusted EBITDA between $700 million and $900 million came in lower than analysts expected, but that was on purpose, CEO Jason Robins explained.
In prior years DraftKings was consistently beating and raising expectations by issuing more conservative estimates. Robins called that playbook “a lot better.”
“My team came in and showed me a number and said, “We can hit this,” Robins said on Friday’s call. “And I said, “No, go make it lower.” They went back, and they said, “Okay, now, really, like, we’re sure we can hit this.” And I said, “I don’t care, make it lower again.” And that’s what we got.
But, you know, for me, missing numbers again is just not acceptable, and so it’s not something we’re willing to do.”
Analysts still positive on DKNG
This dip is mostly seen as a discounted entry spot into DraftKings ownership, analysts said.
Barry Jonas of Truist chalked the selloff up to “a confluence of the self-imposed ‘conservative’ guidance, prediction market uncertainty and fears of higher state taxes.” He lowered his price target to $33 from $45 but maintained his buy rating.
Steve Pizzella of Deutsche Bank said DraftKings will have to prove that this guidance number is actually beatable after previous downward revisions. He reiterated his hold rating while his target dropped to $26 from $36.
