DraftKings Inc. (NASDAQ: DKNG) shares plunged 7.42% Tuesday to close at $19.59, hitting a new 52-week low even as fresh analyst commentary highlighted healthy early-season NFL betting activity.
The selloff came without a new company operating announcement that would explain the sharp decline.
The stock touched a new 52-week low of $19.55 and traded 24.457 million shares, more than double its average daily volume of 12.042 million, according to Yahoo Finance. DraftKings traded 6.6% lower at $19.77 as of 2:51 p.m. ET before weakening further into the close.
Stifel reiterated its Buy rating and $36 price target Tuesday, pointing to roughly 15% year-over-year growth in DraftKings’ sportsbook handle during the first two weeks of the NFL season, excluding predictions. The firm also highlighted lower promotional spending than a year earlier.
However, the 15% growth figure was not a new company disclosure. DraftKings CEO Jason Robins had disclosed the increase at the Wells Fargo Consumer Conference on Sept. 22, meaning Stifel’s Tuesday note reiterated a previously reported operating trend rather than introducing a fresh company update.
Prediction-Market Spending and Pricing Remain in Focus
DraftKings’ expansion into prediction markets has also brought additional spending into focus. Robins said at the Sept. 22 Wells Fargo conference that stronger-than-expected early customer acquisition could lead the company to increase spending and bring forward some investment previously planned for 2027.
StoneX later cut its 2026 adjusted EBITDA estimate to $575 million from $675 million, citing expectations that prediction-market investment could exceed $400 million.
Pricing competition has also drawn analyst attention. Citizens reiterated its Market Outperform rating and $35 price target on Sept. 28 after comparing 30 NFL Week 3 pricing data points across DraftKings, FanDuel, and Kalshi. The firm found that Kalshi’s implied pricing was roughly in line with FanDuel’s and about 3% better than DraftKings across the games examined.
Prediction Markets Face Broader Regulatory Scrutiny
Prediction markets returned to the regulatory spotlight Tuesday after House Oversight Committee Chair James Comer expanded an inquiry into potential insider trading on prediction platforms.
The latest requests went to Hyperliquid Labs, Crypto.com, and Aristotle Exchange Inc., following the earlier requests involving Kalshi and Polymarket. DraftKings was not named among the companies in the reported requests.
DraftKings entered prediction markets in December 2025 with the launch of DraftKings Predictions, followed by the June 2026 introduction of DKeX, its proprietary exchange, placing the company in a market category that has drawn increased attention from lawmakers and regulators.
Separately, the Sixth Circuit ruled Sept. 25 that Kalshi had not shown its sports-event contracts were “swaps” under the Commodity Exchange Act and that the law did not preempt Ohio or Tennessee gambling laws, allowing state enforcement to proceed.
