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DraftKings (DKNG) Stock: Can Thursday Earnings Spark a Reversal?

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DKNG Stock Card

TLDR

  • DraftKings reports Q4 earnings Thursday with analysts projecting $0.09 EPS and $1.99 billion revenue, both up year-over-year
  • Shares hit two-year low of $25.01 last week, trading at $26.28 after 3% drop Wednesday, down 23.8% in 2026
  • Company launched DraftKings Predictions to counter prediction market threat and access states without legal sports betting
  • Wall Street analysts now say prediction market fears overblown, estimating only 5% impact on legal betting handle
  • Technical indicators show oversold RSI at 27.7 while 7.8% short interest could fuel post-earnings rally

DraftKings delivers its fourth-quarter earnings report Thursday after the closing bell. Wall Street expects earnings per share of $0.09 on revenue of $1.99 billion.


DKNG Stock Card
DraftKings Inc., DKNG

Zacks Research projects higher earnings of 50 cents per share on the same revenue figure. Both estimates exceed last year’s Q4 results.

The stock closed down 3% Wednesday at $26.28. Year-to-date, shares have plunged 23.8%.

Stock Performance and Technical Setup

DraftKings touched a two-year low of $25.01 on Feb. 5. The stock has failed multiple attempts to break through resistance at $37.50.

Technical indicators paint an interesting picture. The 14-day RSI reads 27.7, signaling oversold conditions. Historically, readings below 30 often precede rebounds.

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Short interest represents 7.8% of the float. That’s nearly three days of potential buying pressure if shorts scramble to cover on positive earnings news.

Options markets expect a 15.9% move after earnings. This dwarfs the stock’s typical 5.3% post-earnings swing. The company has closed higher in five of its last eight earnings sessions, including an 8.6% jump in November.

Prediction Markets Enter the Picture

Three months ago, CEO Jason Robins declared himself “the most bullish” about DraftKings’ future. The stock is down 6% since.

Prediction markets emerged as a concern for investors. These platforms let users bet in states without legalized sports betting, potentially cutting into DraftKings’ growth.

DraftKings responded by launching DraftKings Predictions. The platform serves defensive and offensive purposes. It protects market share while giving the company access to restricted states.

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The move also builds a customer database. If those states legalize sports betting later, DraftKings already has users to convert.

Wall Street Reconsiders the Threat

Analysts are walking back their prediction market concerns. Third Bridge’s Alex Smith doesn’t expect DraftKings to fully commit to the space. Regulatory uncertainty and unproven demand outside sports remain issues.

Sports betting drives 89% of Kalshi’s fee revenue in 2025. Kalshi and Polymarket dominate the prediction market landscape.

Citizens analyst Jordan Bender downplayed the competitive threat in January. His research suggests prediction markets capture roughly 5% of total legal sports betting handle.

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Bender noted one poor Monday Night Football game could match the EBITDA impact of the entire prediction market sector. The comparison highlights how much investors may have overreacted.

Thursday’s earnings call will shed light on DraftKings Predictions performance. Management’s commentary will reveal whether the company views prediction markets as a real threat or minor distraction.

The stock’s oversold condition and high short interest create potential for a sharp move if results beat expectations. Analysts will focus on revenue growth, user metrics, and any updated guidance for 2026.

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Crypto World

Drift Protocol Warns of Potential Cybersecurity Exploit

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Cybercrime, Cybersecurity, Hacks, Decentralized Exchange

Drift Protocol, a decentralized cryptocurrency exchange (DEX), detected “unusual” trading activity on the platform on Wednesday, warning users not to deposit funds until the issue has been resolved.

The Drift team did not disclose the specific cause of the ongoing incident or the damage in its initial announcement and is currently investigating the issue. 

In a subsequent update, the Drift team announced that deposits and withdrawals on the platform have been suspended. 

Cybercrime, Cybersecurity, Hacks, Decentralized Exchange
Source: Drift Protocol

Blockchain cybersecurity threat researcher Vladimir S said the exploit was likely due to a crypto wallet private key leak, and the total funds lost in the incident could be as high as $200 million. 

“Admin signer was compromised, or whoever controls it intentionally executed these changes,” he said

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The stolen assets include wrapped versions of Bitcoin (BTC), Jito (JTO), the Fartcoin (FRT) memecoin, other altcoins, and various dollar, euro, and Japanese yen stablecoins, which have since been transferred to multiple wallets, according to Vladimir S.

Cybercrime, Cybersecurity, Hacks, Decentralized Exchange
Source: Vladimir S

The exploiter started converting the stolen assets to the USDC (USDC) stablecoin, bridging the funds to the Ethereum network and purchasing Ether (ETH), according to Solana treasury company DeFi Development Corp.

Cointelegraph reached out to Drift Protocol but did not receive an immediate response by the time of publication. 

Cybersecurity exploits and hacks were responsible for $49 million in crypto losses during February, a sharp decrease from January, but a reflection of the ongoing security threats users and platforms face.

Related: Resolv temporarily halts protocol to ‘contain the impact’ of 80M USR exploit

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Drift token impacted by the exploit

The price of the Drift (DRIFT) token briefly reached $0.68 on Wednesday, but fell by about 18% following news of the exploit, according to data from CoinMarketCap.

Cybercrime, Cybersecurity, Hacks, Decentralized Exchange
Drift token falls after news of the exploit. Source: CoinMarketCap

About 83% of the native crypto tokens of hacked platforms never recover to pre-hack prices, according to blockchain security company Immunefi. 

“The stolen funds are only the first layer of damage,” Immunefi CEO Mitchell Amador told Cointelegraph in March.

“What follows is often more destructive: sustained token price suppression, reduced treasury capacity, leadership disruption, lost development time, and erosion of user trust,” he added. 

Magazine: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT: Asia Express

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