DraftKings Trading Volume Plummets 30.52% to $432 Million Ranking 300th in Market

On April 8, 2025, DraftKings (DKNG) experienced a significant decline, with its trading volume dropping by 30.52% to $432 million, placing it at the 300th position in the day's stock market rankings. The stock price fell by 3.01%.

Needham has reaffirmed its Buy rating on DraftKings with a price target of $65, despite adjusting its near-term estimates due to the outcomes of March Madness betting. The firm reduced its Q1 adjusted EBITDA forecast by $70 million, citing unfavorable game results during the NCAA tournament that offset the positive impact from the Super Bowl. This revision places the new projection below the company's current full-year EBITDA guidance. However, Needham anticipates a return to momentum in Q2, partly driven by early surprises such as Duke's exit from the tournament.

Despite short-term volatility, Needham emphasizes that sports outcomes are inherently unpredictable and should not affect the long-term outlook. Recent investor discussions have focused on bearish themes, including slowing handle growth, potential recession, increased state tax burdens, competition from prediction markets, and structural hold questions. Needham believes these concerns are either overstated or manageable over time. With shares under pressure, the firm views the pullback as a buying opportunity for long-term investors, especially as DraftKings continues to scale and build competitive advantages in the growing online sports betting and iGaming markets.

DraftKings reported revenues of $1.39 billion for the fourth quarter, marking a 13.2% year-over-year increase. Although this figure fell short of analysts' expectations by 0.9%, it still represented a strong quarter for the company. The company is also investing in long-term growth opportunities beyond traditional sports betting and iGaming, positioning itself for future success.