TLDR
- DraftKings stock rose more than 11% on Tuesday, its biggest single-day gain in over three-and-a-half years.
- Annualized consumer trading volume on DraftKings Predictions hit $1.3 billion in May, up 24% month over month.
- Total annualized trading volume climbed 34% to $3.1 billion.
- TD Cowen maintained a Buy rating with a $30 price target; UBS raised its target to $49.
- DraftKings remains well behind Kalshi, which posted $10.4 billion in sports trading volume in May alone.
DraftKings (DKNG) stock surged more than 11% on Tuesday after the company released preliminary operating metrics showing strong growth on its prediction markets platform. The move was DKNG’s largest single-day percentage gain in more than three-and-a-half years, with the stock opening at $27.59 on Wednesday.
The data came from an SEC regulatory filing disclosing May activity on DraftKings Predictions, the company’s entry into the prediction markets space.
Annualized consumer trading volume on the platform rose 24% month over month to $1.3 billion. Total annualized trading volume climbed even faster, up 34% from April to $3.1 billion.
DraftKings noted the figures are preliminary, based on internal data, and subject to change.
The stock had been under pressure over the past year, facing broader sector headwinds and growing competition from dedicated prediction market operators like Kalshi and Polymarket.
Prediction Markets Growth
Prediction markets allow users to trade contracts tied to outcomes across sports, financial markets, and geopolitical events. The category has grown quickly, attracting both retail and institutional attention.
To get in the game, DraftKings and rival FanDuel each acquired regulated futures exchanges and built out their own platforms.
The timing looks deliberate. DraftKings is positioning itself ahead of the 2026 FIFA World Cup, hosted across the United States, Canada, and Mexico — a major potential volume driver.
The company also has access to users in large states where traditional sports betting remains illegal, including Texas and California.
Despite the growth, DraftKings has plenty of ground to make up. Kalshi alone posted $10.4 billion in sports trading volume in May, according to Dune data.
Analyst Reactions
TD Cowen kept its Buy rating on DKNG with a $30 price target, calling prediction markets “a large, early-stage opportunity that expands the addressable market.”
The firm also described DraftKings’ core business as “inflecting toward durable profitability, driven by product depth, structural hold, and operating leverage,” and named it a top pick among small- and mid-cap stocks.
UBS went further, maintaining its Buy rating and raising its price target from $43 to $49.
JPMorgan has an Overweight rating but trimmed its target to $31. BNP Paribas has an Underperform rating with a $20 target.
Across the Street, the consensus is Moderate Buy with an average price target of $34.21, based on 28 Buy ratings, 9 Holds, and 2 Sells.
On the institutional side, Capital World Investors raised its stake by 181.4% in Q4, while Vanguard added 3.1% to its position.
DraftKings’ most recent quarterly earnings, reported May 8th, showed EPS of $0.20, missing the $0.22 consensus by $0.02. Revenue came in at $1.65 billion, slightly above the $1.63 billion estimate, up 16.8% year over year.
Technically, the stock is now trading above its 20-day, 50-day, and 100-day moving averages. It remains below the 200-day moving average. RSI sits at 51.23, indicating neutral momentum. Analysts see resistance near $32 and support around $23.50.
CEO Jason Robins is scheduled to appear at an upcoming investor conference, where the company’s prediction markets strategy is likely to be discussed.
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