DraftKings Q4 Revenue Seen at $1.99B, Shares Hit $25 Two-Year Low
Analysts forecast DraftKings’ Q4 revenue at $1.99 billion, up from $1.39 billion a year earlier, and EPS of $0.38 versus $0.14, as prediction markets rollouts test betting handle. Shares sank to a two-year low of $25.01, down 26.5% year-to-date, with 7.8% float shorted and RSI at 27.7.
1. Q4 Estimates & Prediction Market Impact
DraftKings is projected to report Q4 revenue of $1.99 billion, a 43% increase year-over-year, with EPS of $0.38 versus $0.14 in Q4 2024. The rollout of DraftKings Prediction and a Crypto.com partnership will be scrutinized for their effect on sportsbook handle and the potential to expand or divert total addressable market.
2. Share Performance & Technical Indicators
Shares dropped to $25.01, marking a two-year low and a 26.5% decline year-to-date. With 7.8% of the float sold short and a 14-day RSI of 27.7 in oversold territory, options markets imply a 15.9% post-earnings swing, suggesting potential for short covering or volatility around the earnings release.