Is DraftKings Stock a Buy on Super-App Potential?
Summary
DraftKings' stock has fallen nearly 30% this year amid concerns about the rise of prediction markets, but the company continues to grow revenue and profitability. The company plans to launch its own predictions market and invest $200–$300 million in product technology and marketing to build a super-app that combines sportsbook, online gaming, lottery, and predictions products. Early signs show momentum: April annualized consumer volumes rose 38% month over month and total volumes climbed 43%, while Q1 revenue grew 17% to $1.65 billion and adjusted EBITDA jumped 64% to $167.9 million. DraftKings maintains 2026 guidance of $6.5–$6.9 billion in revenue and $700–$900 million in adjusted EBITDA, and management is pushing for broader state legalization while monitoring potential regulatory developments that could materially affect the outlook.