Publication Date: March 1, 2026, 07:00h.

Last Updated: February 28, 2026, 08:34h.

• DraftKings set to host investor event on Monday
• The stock has decreased by 44.22% in the last year and 30.82% since the start of this year
• Analyst indicates prediction markets insights could drive stock movement

With a nearly 31% decline since the year’s start, Monday’s investor day is crucial for DraftKings (NASDAQ: DKNG) stakeholders. An analyst suggests this event might revitalize the stock’s performance.

In a recent analysis, Jefferies analyst David Katz highlighted that key topics during DraftKings’ investor day are expected to include a three-year core business forecast and updates regarding its prediction markets initiatives. The company has recently ventured into this domain with its DraftKings Predictions platform, and investors are keen to understand the associated costs of competing with established players like Kalshi and Polymarket, as well as an expanding array of competitors.

The gaming company may also elucidate its financial forecast for 2026, which disappointed investors last month.

“Our projection of $6.89 billion aligns with DKNG’s fiscal year 2026 revenue guidance of $6.5 billion to $6.9 billion (though consistent with consensus), considering management’s exclusion of revenue from Prediction Markets this year, contrary to our and the market’s expectations,” notes Katz. “For the FY26 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), our estimate of $811 million is slightly below the consensus of $821 million but aligns with the median of current guidance ranging from $700 million to $900 million.”

The analyst also suggests that DraftKings may provide updates on iGaming initiatives in Maine and sports betting launches in Alberta, Canada.

Exploring Prediction Market Insights

DraftKings has forecasted spending between $50 million and $200 million in prediction markets this year, reflecting the fierce competition within this emerging sector. This move is a natural progression as the operator has always been at the forefront of tech-driven betting.

One aspect that investors are likely keen to understand is the company’s plans for internal market making, which could enhance efficiencies and potentially yield additional revenue.

“A crucial element of DKNG’s strategy involves market making, which could result in diverse outcomes,” Katz adds. “We suspect that DKNG plans to act as a market maker on DraftKings Predict and on competitors’ designated contract markets, showcasing the company’s risk management expertise, which is expected to be a focal point of discussion.”

Is DraftKings Stock Poised for Recovery?

As the investor day approaches, it follows DraftKings’ announcement of workforce reductions impacting up to 5% of its employees, aimed at achieving annual savings of $30 million.

This decision comes amidst a challenging period for the company and competitors like Flutter Entertainment (NYSE: FLUT), facing unfavorable outcomes for customers and investor concerns over potential threats from yes/no exchanges. However, Katz is optimistic about the stock’s trajectory, rating it a “buy” with a target price of $46. He also notes that prediction markets have not significantly impacted DraftKings’ primary operations.

“Importantly, ongoing data reinforces management’s assertion that the introduction of predictions has only a minimal effect on market share,” concludes the analyst. “We believe the current situation is considerably more advantageous given the potential catalysts, the composition of estimates, and an 11X multiple on the projected EBITDA of $1.1 billion for 2027.”