Why DraftKings Stock Dropped Today | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Joe Tenebruso)February 14, 2026
AI-Generated Deep Dive Summary
DraftKings' stock dropped significantly today after the company released a lukewarm growth forecast that disappointed investors. Despite strong fourth-quarter results, including a 43% year-over-year revenue surge to $2 billion and net income of $136 million—a marked improvement from last year's loss—investors focused on the 2026 guidance. The company projected full-year revenue between $6.5 billion and $6.9 billion and adjusted EBITDA of $700 million to $900 million, both below Wall Street expectations. This underperformance likely fueled concerns about growing competition in the prediction market industry, seen as a potential threat by investors.
DraftKings' mobile sports betting operations now span 26 states and Washington, D.C., reaching nearly half of the U.S. population. The company's average monthly unique paying customers remained steady at 4.8 million, with revenue per customer rising 43% to $139, driven by parlay bets and favorable sporting outcomes. Fourth-quarter profitability saw a stark improvement, with net income jumping from a loss of $135 million to $136 million in the prior year quarter. Adjusted EBITDA surged 284% to $343 million.
However, investors were apparently more concerned about DraftKings' future projections and competition. The company's CEO, Jason Robins, views prediction markets as a significant growth opportunity rather than a threat. He plans to invest in building the best customer experience and acquiring millions of new customers. While
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Originally published on The Motley Fool on 2/14/2026