BMO Capital Expresses Concern Over DraftKings’ (DKNG) 2026 Guidance, Prediction Market Competition

This guidance is discouraging contempt management’s claims that prediction markets person a minimal interaction connected business. Additionally, the steadfast besides suggested that a softer January grip volition apt persist successful fueling concerns regarding contention from prediction markets arsenic DraftKings expands its ain prediction offerings.

On the aforesaid day, Canaccord lowered its terms people connected DraftKings Inc. (NASDAQ:DKNG) to $44 from $50 portion maintaining a Buy standing pursuing coagulated Q4 results. Despite the affirmative quarter, which was supported by favorable sports outcomes and a 4% year-over-year summation successful January handle, the banal experienced an after-hours sell-off owed to disappointing FY 2026 guidance. Management besides addressed contention from prediction markets, noting lone a humble interaction connected engagement centered chiefly among lower-value customers, which resulted successful an immaterial effect connected wide revenue.

DraftKings Inc. (NASDAQ:DKNG) operates arsenic a integer sports amusement and gaming institution successful the United States and internationally.

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