DraftKings Slides 5% as Volume Plummets to 123rd Rank, Analysts Target 47% Rally

August 8, 2025 marked a 5.13% decline for DraftKings (DKNG) as trading volume dropped 31.74% to $730 million, ranking 123rd in market liquidity. The stock's performance followed a bullish price target upgrade from Susquehanna analyst Joseph Stauff, who set a $64 level for the operator of daily fantasy sports and online betting platforms.

The stock's volatility reflects its position in the rapidly evolving digital gaming sector. Susquehanna's $64 price target implies a 47.81% upside potential from its recent trading range of $42.91-$44.88. This optimism is supported by DraftKings' second-quarter results showing record $1.51 billion in revenue and 30-cent EPS, both up 37% year-over-year. The company raised full-year guidance for revenue and earnings, citing a 29% increase in average revenue per user.

Despite the recent price drop, DraftKings maintains a $21.47 billion market capitalization. The firm's financial performance was driven by favorable sportsbook outcomes, though its stock had previously gained 11% in the month preceding the earnings report. Analysts have raised price targets following the improved guidance, indicating confidence in the company's long-term profitability trajectory.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present. This significantly outperformed the 29.18% benchmark return, highlighting liquidity concentration's role in short-term performance. High-liquidity stocks demonstrate amplified price movements even during volume declines, as demonstrated by this backtesting analysis.