DraftKings Post-Earnings Slide Takes Stock to Lowest Levels Since April 2023

• DraftKings stock plunges after company issues weak 2026 revenue guidance
• It forecast sales of $6.5 billion to $6.9 billion
• Analysts were expecting $7.3 billion

Shares of DraftKings (NASDAQ: DKNG) in after-hours trading Thursday following a tepid 2026 revenue forecast that’s well below Wall Street estimates.

At this writing, the already battered gaming stock is lower by 16.10% in post-market trading after the company said it expects 2026 revenue of $6.5 billion to $6.9 billion, well below the consensus estimate of $7.3 billion. That’s a dud, particularly when considering some market observers were expecting DraftKings to show improvement this year.

The Company’s guidance ranges for fiscal year 2026 exclude potential variance related to sport outcomes and therefore does not include the modest benefit from year-to-date sport outcomes,” according to a statement issued by the gaming company.

The disappointing forecast has the stock flirting with $21 in after-hours trading, a level last seen in April 2023. DraftKings shares are off nearly 59% over the past five years.

DraftKings Guidance May Stoke Prediction Market Concerns

While data suggest that in states where DraftKings offers online sports betting prediction market operator Kalshi is only modestly nibbling at deposit share, the former’s slack 2026 guidance could fuel speculation that yes/no exchanges are harming sportsbook business.

“DraftKings is live with mobile sports betting in 26 states and Washington, D.C., which collectively represent approximately 52% of the U.S. population,” according to the statement.

Regarding the company’s prediction markets platform, DraftKings CEO Jason Robins sounded a bullish tone, saying the operator will use growth capital to expand that offering and “acquire millions of customers,” adding it has know-how to accomplish that objective.

DraftKings Making Rosy Assumption on State Taxes

There’s downside risk to DraftKings’ 2026 financial outlook because the operator said that guidance “assumes state tax rates will remain consistent with where they are today.”

Arguably, that’s a bullish assumption and that could prove inaccurate, particularly when considering it arrived  day after it was revealed Gov. Gretchen Whitmer (D-MI) wants to implement an Illinois-style per bet tax in her state — the burden of which would be heavy for large operators like DraftKings. Whitmer also wants to raise the levy on iGaming operators in Michigan, of which DraftKings is one.

Likewise, Arizona Gov. Katie Hobbs (D) wants to more than quadruple that state’s sports betting tax. The Arizona and Michigan plans confirm states will, at a minimum, examine increasing sports wagering levies in an effort to bolster revenue — a reality DraftKings cannot ignore.