Publication Date: May 9, 2026, 01:27h.
Updated on: May 9, 2026, 01:27h.
- Significant momentum is evident in the stock
- The company highlighted advancements in its prediction market product
- Macquarie analyst identifies considerable growth potential for DraftKings stocks
DraftKings (NASDAQ: DKNG) showcases unparalleled dominance in online sports betting (OSB), and its emerging prediction market product indicates it may be one of the most promising growth prospects within the gaming industry, as suggested by several analysts.
In a recent analysis for clients, Macquarie’s Chad Beynon stated that DraftKings continues to be a standout in terms of structural growth, based on current indicators. The stock increased by 8.64% this week, partially boosted by strong first-quarter earnings, which showcased positive developments regarding DraftKings Predictions.
The predictions product is rapidly evolving, with market-making already initiated and a proprietary exchange set to debut soon,” Beynon notes. “DraftKings is now primed to escalate its customer acquisition efforts for predictions, which is expected to significantly boost monthly unique players (MUPs) in the latter half of the year.”
Beynon maintained an “outperform” rating for the stock alongside a 12-month price target of $38, suggesting a potential upside of 59.1% from the previous Friday’s closing price.
DraftKings Predictions: A Potential Long-Term Growth Engine
Launched last December, DraftKings Predictions is already hinting that its event contracts could drive future growth.
In a shareholder letter, co-founder and CEO Jason Robins highlighted that April’s volume for DraftKings Predictions surged to $1 billion, with an annualized turnover of $2.3 billion, marking month-over-month growth of 38% and 43%, respectively.
While DraftKings has further ground to cover to compete with entities like Kalshi regarding market share, it possesses the potential to become a strong contender in the predictions market. Furthermore, DraftKings can utilize its sports betting expertise to enhance its prediction market success—similar to how it capitalized on its daily fantasy sports (DFS) experience following the 2018 ruling on the Professional and Amateur Sports Protection Act (PASPA).
“We have followed this model before, where initial investments pave the way for long-term growth,” Beynon adds.
Market Making: Another Catalyst for DraftKings
DraftKings recently introduced its comprehensive mobile application, a ‘super app’, which has already resulted in an 80% reduction in customer acquisition costs for predictions last month. This is commendable on its own, but the operator has additional strategies to enhance its prediction market impact, including market making.
This transition aligns well with the company’s expertise in sports trading and could further drive its stock price appreciation.
“We have initiated market making, which opens up an additional layer of value,” Robins stated. “Market making is already yielding positive returns for us. In the near future, we anticipate launching our proprietary exchange and offering combinations. These strategies will accelerate innovation, enhance the customer experience, and strengthen our economic position.”