DraftKings Shares Dip 1.49% on $480M Volume (Rank 196th) as $18B Buyback Looms

On August 19, 2025, DraftKings (DKNG) closed with a 1.49% decline, trading at a volume of $480 million, ranking 196th in market activity for the day. The stock’s performance coincided with a report highlighting its potential to repurchase up to $18 billion in shares over the next decade. Morningstar analyst Dan Wasiolek emphasized the company’s strong financial position, noting $1.33 billion in cash reserves against $1.26 billion in long-term debt maturing in 2028. The firm also retains $500 million in untapped revolver capacity, underscoring its flexibility for capital returns.

Wasiolek’s analysis underscores DraftKings’ competitive advantages in the US online sports betting sector, where it and FanDuel dominate the market. The company’s in-house technology platform, acquired in 2020, enables rapid product innovation and customer data optimization. Recent investments in in-game wagering and strategic acquisitions have been praised by Wall Street, positioning DraftKings to capitalize on the approaching football season as a near-term catalyst.

Despite regulatory pressures and competitive threats, DraftKings maintains a narrow moat rating from Morningstar, reflecting its brand recognition and durable market share. The firm’s current $22.69 billion market capitalization could see significant share reduction if the $18 billion buyback materializes, potentially mitigating dilution from insider selling. The company is already executing a $1 billion repurchase plan, retiring 6.5 million shares in the first half of 2025.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a moderate return. The total profit from December 2022 to August 2025 was $2,940, with a maximum drawdown of $-1,960 during the same period. This indicates a volatile but ultimately positive performance, with the highest peak-to-trough decline being 19.6%.