DraftKings Stock Fell 12.3% in October — Could Thursday’s Earnings Spark a Rebound?
DraftKings faces mounting pressure to deliver strong third-quarter results after a difficult October. The gaming stock dropped 12.32%, ending Halloween trading at $30.59 — its lowest closing price since August 2024.
Market Reactions and Investor Concerns
Investors reacted cautiously as rising activity on prediction markets like Kalshi drew attention. Many viewed the emergence of sports event derivatives as potential competition for DraftKings and other major sportsbooks, pushing their shares downward.
Quarterly Headwinds
Beyond market speculation, DraftKings’ profit margins suffered from a series of favorable NFL results for bettors. In September, a pivotal month for sportsbooks, these outcomes led to weaker performance and caused analysts to trim their quarterly forecasts.
Looking Ahead to Thursday’s Report
While much of the bad news may already be priced into shares, attention now turns to the upcoming earnings update. If DraftKings can maintain its history of outperforming expectations and raising guidance, the report could serve as a starting point for recovery.
It’s possible the company’s third-quarter earnings update could act as the foundation for a rebound. It’s possible, but not promised.
Author’s Summary
DraftKings shares slid in October amid competitive and betting pressures, but upcoming Q3 results may offer the spark needed for a recovery.