DraftKings Q4 Preview: Will Prediction Markets Be A Headwind Or Tailwind? Investors May Find Out - DraftKings (NASDAQ:DKNG)

Core Viewpoint - DraftKings Inc is set to report its fourth-quarter results, which may highlight both the potential and challenges of prediction markets in the sports betting industry [1] DraftKings Q4 Earnings Estimates - Analysts project DraftKings' Q4 revenue to reach $1.99 billion, an increase from $1.39 billion in Q4 2024 [2] - Expected earnings per share for Q4 are 38 cents, up from 14 cents per share in the same quarter last year [2] - The company has missed revenue estimates in six of the last ten quarters, including Q3, but has beaten earnings estimates in nine of the last ten quarters [2] Analyst Ratings and Price Targets - Bank of America views DraftKings favorably compared to competitors, particularly due to a lower betting handle on the Seattle Seahawks [3] - Recent analyst ratings include: - Canaccord Genuity: Buy rating, price target lowered from $54 to $50 - Stifel: Buy rating, price target lowered from $46 to $44 - Guggenheim: Buy rating, price target lowered from $45 to $42 - Morgan Stanley: Overweight rating, price target raised from $50 to $53 [8] Key Items to Watch in DraftKings Q4 Results - The focus during the conference call will likely be on prediction markets, as DraftKings is among several firms entering this space [4] - The results will be analyzed in the context of the recent Super Bowl, with insights expected on betting handle and new customer acquisition [5] - The company may discuss its DraftKings Prediction platform and a partnership with Crypto.com to enhance consumer offerings [6] Stock Price Action - DraftKings stock has decreased by 3.4% to $26.21, with a year-to-date decline of 26.5% and a 39.6% drop over the last 52 weeks [10]