PomegraDraftKings Stock Plunges 18% After Earnings Miss
Why is DraftKings stock down today?
DraftKings (DKNG) stock fell 18.4% to $19.20 in after-hours trading on Thursday after an earnings miss, as a wider loss and a lower 2026 sales forecast disappointed investors.
Key numbers
| Q3 revenue | $1.33B+16% YoY; missed ~$1.40B estimate |
|---|---|
| Loss per share (GAAP / adjusted) | $0.94 / $0.53Adjusted vs $0.39 loss expected |
| 2026 revenue guidance | $6.35B–$6.55Bfrom $6.5B–$6.9B |
| 2026 adjusted EBITDA guidance | $175M–$275Mfrom $700M–$900M |
| 2027 revenue guidance | $7.35B–$7.75B+17% at midpoint |
| After-hours move | $19.20-18.4% (other reports: -20% to -23%) |
What happened
DraftKings (DKNG) stock fell 18.4% to $19.20 in after-hours trading on Thursday after an earnings miss, as a wider loss and a lower 2026 sales forecast disappointed investors. Sales rose 16% to $1.33 billion but missed the roughly $1.40 billion analysts expected. The loss was $0.94 per share, or $0.53 after one-off items (the adjusted figure), versus the $0.39 loss analysts expected. It cut its 2026 sales forecast to $6.35–$6.55 billion and expected profit (adjusted EBITDA) to $175–$275 million from $700–$900 million, citing heavy spending on its Predictions product.
Why it matters
DraftKings is one of the biggest US sports-betting companies, and its new forecast shows how costly its push into prediction markets (betting on real-world events) has become. Profit this year is now expected to be less than a third of what it said before. The company says the spending will pay off, forecasting $650–$750 million in Predictions sales and $7.35–$7.75 billion in total sales in 2027. Rival Flutter also cut its outlook this week.
Who this affects
- MarketbearishMedium impact
- Betting-stock investors face pressure after the sharp drop.
- CompanybearishHigh impact
- Shareholders lost roughly a fifth of the stock's value after hours.
- CompetitorsmixedLow impact
- Flutter also cut its outlook; Penn did not.
- IndustrybearishMedium impact
- Prediction-market spending is squeezing online betting profits.
DraftKings vs Flutter, PENN Entertainment
How we got here
Flutter cuts its 2026 revenue and profit outlook after missing Q3 estimates.
DraftKings reports Q3 results after the market close and lowers 2026 guidance.
Shares fall about 18% after hours to $19.20, near the 52-week low of $18.36.
What to watch
- How DraftKings shares trade when US markets open after the after-hours drop2026-11-06
- Whether Predictions revenue builds toward the $650–$750 million 2027 targetQ4 2026
Educational content only. Not investment advice.
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