DraftKings has received downgrades from JPMorgan, UBS and Stifel following its third-quarter results and reduced 2026 outlook.
Analysts questioned the potential returns from the company’s expanding prediction-markets business and the uncertainty surrounding its regulatory future.Forecast reductions
DraftKings lowered its 2026 core revenue guidance to $6.35bn–$6.55bn and adjusted EBITDA guidance to $175m–$275m. The company said its prediction-markets business could generate between $900m and $1.05bn in combined adjusted EBITDA losses through 2027. Its shares fell 21.3% on the Friday following the results, according to the report.
The debate for investors is whether customer acquisition and trading activity can translate into sustainable economics as promotional spending changes and legal challenges continue.