Stock Market Today, Feb. 13: DraftKings Falls After 2026 Revenue Outlook Misses Expectations
The Motley Fool
by newsfeedback@fool.com (Josh Kohn-Lindquist)February 13, 2026
AI-Generated Deep Dive Summary
DraftKings (NASDAQ: DKNG), a leading provider of online sports betting, daily fantasy sports, and iGaming services, saw its stock price drop significantly on February 13th after its Q4 earnings report and 2026 revenue outlook disappointed investors. The company closed at $21.76, marking a 13.51% decline, driven by conservative growth targets that fell short of market expectations. Trading volume surged to 65.6 million shares, nearly four times its three-month average, reflecting heightened investor sentiment.
Despite reporting a 43% increase in sales and a more than triple rise in adjusted EBITDA for Q4, DraftKings' earnings missed Wall Street's consensus estimates. Management’s guidance for just 11% sales growth in 2026 was seen as overly cautious by the market, which had anticipated stronger growth given the company’s expansion into new markets and increasing popularity of online gaming.
The broader market showed minimal movement, with the S&P 500 inching up 0.03% to 6,835 and the Nasdaq Composite slipping 0.22% to 22,547. Among DraftKings’ peers, Penn Entertainment also saw a modest decline of 5.24%, closing at $11.76.
DraftKings' current valuation appears attractive, trading at just 2 times sales and 21 times free cash flow, even after its stock price fell by 53% over the past year. The company’s Q4 results highlighted minimal disruption from prediction markets, suggesting a stable business foundation despite external market dynamics.
This development matters for investors as it underscores the challenges of balancing aggressive growth with sustainable profitability in the highly competitive online gaming sector. DraftKings’ cautious approach to future growth signals potential headwinds for stakeholders expecting rapid expansion and returns.
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Originally published on The Motley Fool on 2/13/2026