DKNG Roars Back: DraftKings Stock Erases Post-Earnings Slump in Stunning Reversal

DraftKings (DKNG) just pulled off the trading equivalent of a last-minute touchdown—shaking off post-earnings losses to close in the green.

The comeback kid: After taking an early hit following its earnings report, DKNG bulls stormed back to flip the script. No specifics on what fueled the rally—just pure, unfiltered market adrenaline.

Wall Street’s casino rules: Another day, another reminder that earnings reactions are about as predictable as a drunk blackjack player. But hey—at least someone’s making money on the volatility.

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DKNG stock had been down sharply in premarket trading after the company reported third-quarter financial results that missed Wall Street’s forecasts across the board. However, investors appear to have had second thoughts about the shares and were bidding them up 2% in afternoon trading.

The rise in DKNG stock is also notable coming as it does on a day when all three major U.S. indices are deeply in the red, with the technology-laden Nasdaq index on which DraftKings trades down 350 points of 1.50%. Despite the bounce higher on Nov. 7, DraftKings’ share price is down 21% on the year.

Big Miss

DraftKings third-quarter print was disappointing across the board, with the Boston-based company announcing an earnings per share (EPS) loss of $0.52, which was greater than the loss of $0.43 expected on Wall Street.

Revenue for the quarter totaled $1.14 billion, which was below Wall Street’s estimate of $1.20 billion. Guidance wasn’t much better, with management forecasting full-year 2025 sales of $5.9 billion to $6.1 billion. Wall Street has forecast $6.19 billion in sales for the company.

Is DKNG Stock a Buy?

The stock of DraftKings has a consensus Strong Buy rating among 26 Wall Street analysts. That rating is based on 23 Buy, two Hold, and one Sell recommendations issued in the last three months. The average DKNG price target of $49.16 implies 70.69% upside from current levels. These ratings might change after the company’s latest financial results.