DraftKings Stock Lost 12.3% Last Month. Could Thursday's Earnings Help Turn Things Around?
DraftKings’ third-quarter earnings report may serve as a turning point for the struggling gaming stock, but only if the company continues its track record of surpassing expectations and guidance.
October Downturn for DraftKings
October proved rough for DraftKings (DKNG +0.39%), as the stock fell 12.32%. The share price closed Halloween trading at $30.59, its lowest end-of-day value since August 2024. Similar declines hit other sports-betting companies during the same period.
Market Factors and Investor Reaction
Investors reacted cautiously to increasing volumes on prediction markets like Kalshi. These emerging markets were viewed as potential threats to DraftKings’ offerings. As a result, many traders pulled back, pressuring the company's stock price.
Headwinds from the NFL Season
Beyond competition concerns, DraftKings also faced margin challenges from favorable NFL game outcomes that benefited bettors. September, typically the most profitable month of the third quarter, turned out to be difficult for sportsbooks, prompting analysts to lower their profit forecasts.
“The house doesn’t always win.”
Looking Ahead
Most of the recent setbacks seem already priced into DraftKings’ shares. The upcoming third-quarter earnings release, scheduled for Thursday, could spark a rebound — though there are no guarantees.
Author’s summary: DraftKings’ sharp October decline may reverse if its quarterly results reconfirm investor confidence and highlight resilience amid competition and NFL-related losses.