DraftKings investors woke up to a bit of a gut punch on Friday, January 16, 2026. If you were looking at the ticker, you saw it. The dkng stock price today per share took a sharp nosedive, closing down 8.01% at $32.62. This wasn't just a tiny wiggle in the chart. We are talking about a significant slide from the previous close of $35.46.
Honestly, the mood in the betting world has been a roller coaster lately. Just a few days ago, things looked pretty decent. Wells Fargo had actually upgraded the stock from "equal weight" to "overweight." They even slapped a $49 price target on it. But as we've learned with DraftKings, the house doesn't always win on Wall Street.
The day started with a glimmer of hope as the stock opened at $35.01. It didn't last. By mid-morning, the selling pressure turned into a flood. By 2:20 PM ET, shares had bottomed out at $32.52. Even with a tiny bounce toward the end of the session, the damage was done.
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What is actually happening with DraftKings right now?
It is easy to look at a single-day drop and panic, but you've got to look at the context. DraftKings has been fighting some serious headwinds since their Q3 2025 earnings report back in November. They missed revenue estimates by a long shot—reporting $1.14 billion against an expected $1.40 billion. Management even had to trim their full-year guidance.
Whenever a growth company like DraftKings admits that things are slowing down, the market gets jumpy. It’s basically the equivalent of a quarterback fumbling on the first drive. People start questioning the whole game plan.
Despite the Friday slaughter, some analysts are still holding the line. Morgan Stanley’s Ed Young recently set a target of $53.00. That is a massive gap from where we are sitting right now. It suggests that while the "today" price looks ugly, the long-term "tomorrow" might still have some legs.
Decoding the dkng stock price today per share and why it’s so volatile
DraftKings is a high-beta stock. In plain English? It moves a lot more than the general market. When the S&P 500 sneezes, DKNG catches a cold. When there’s a rumor about a new state legalizing sports betting, the stock acts like it just won the Super Bowl.
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The current 52-week range is wild. We've seen a high of $53.61 and a low of $26.23. Sitting at $32.62, we are closer to the floor than the ceiling. For a lot of value hunters, this is starting to look like a "buy the dip" scenario. Simply Wall St recently ran a discounted cash flow (DCF) model and argued that the intrinsic value could be as high as $87.80.
Wait. $87.80?
That seems almost delusional given the current price action. But their logic is based on the massive growth in free cash flow expected by 2030. They are betting on the long game. The problem is that investors today are worried about the "short game"—specifically taxes and competition.
The Elephant in the Room: Taxes and Regulation
You can't talk about the DraftKings share price without mentioning the tax man. Several states have been looking at the "Illinois model"—basically jacking up tax rates on sports betting operators to plug budget holes.
DraftKings tried to fight back with a planned "gaming surcharge" for winners in high-tax states last year, but they had to scrap it after a massive PR backlash. Since then, the market has been skeptical about how they will protect their margins if more states follow Illinois' lead.
Why the 2026 Outlook is a Mixed Bag
Looking ahead, there are two very different stories being told about 2026.
- The Bull Case: The sports betting market is still expanding. North America is projected to grow at a CAGR of 11.5% through 2035. iGaming—the digital casino side of the business—is actually more profitable than sports betting, and it's growing fast. DraftKings also has its eyes on the prediction market space, which is exploding in popularity.
- The Bear Case: The "easy" growth from state-by-state legalization is mostly over. The big prizes like California and Texas are still locked behind legislative stalemates. Meanwhile, customer acquisition costs remain stubbornly high. You see it every weekend: every sportsbook is still throwing $200 in "bonus bets" at anyone with a smartphone. It's a race to the bottom for margins.
Understanding the Numbers: A Quick Breakdown
If you are trying to make sense of the valuation, forget the standard P/E ratio for a second because DraftKings is still in that weird transition phase between losing money and being consistently profitable.
- Market Cap: Around $16.24 billion as of the latest drop.
- Revenue Growth: They saw a 4.4% year-over-year increase in Q3 2025, which was actually a bit sluggish for them.
- Analyst Consensus: Shockingly, out of 100 analysts, 96 still have a "buy" rating. Only one has a "sell."
- EPS Outlook: Analysts expect earnings to grow from $0.64 per share in 2025 to $1.53 in 2026. That’s a 139% jump if they can actually pull it off.
The next big date to circle on your calendar is February 12, 2026. That’s when DraftKings is expected to report Q4 2025 earnings. That report will be the make-or-break moment. If they beat expectations and show that the NFL season was a goldmine, the stock could recover quickly. If they miss again? Well, that $26 low might start looking very real.
Is the current price a trap or a bargain?
If you're looking at the dkng stock price today per share and thinking about jumping in, you've gotta ask yourself what kind of investor you are.
If you're a day trader, Friday was a nightmare of broken support levels. But if you’re a long-term believer in the "digitalization of gambling," the stock is trading at a Price-to-Sales (P/S) ratio of about 3.2x. Compare that to the tech-like multiples it used to command, and it’s arguably the "cheapest" it has been in a while relative to its revenue.
But remember, DraftKings isn't just competing with FanDuel anymore. They are fighting for attention against Fanatics, ESPN Bet, and a rising tide of prediction markets like Kalshi and Polymarket. The moat isn't as wide as it used to be.
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Actionable Insights for Investors
If you are holding DKNG or thinking about buying, here are a few things to keep in mind:
- Watch the $30 Level: This is a psychological floor. If it breaks below $30, there isn't much support until the mid-20s.
- Don't Ignore the iGaming Side: Most people focus on the flashy sportsbook ads, but iGaming (slots, blackjack) often has much better margins. Keep an eye on their "Monthly Unique Payers" (MUP) in the next earnings call. If that number is stagnating, the growth story is in trouble.
- Monitor State Tax Legislation: This is the biggest "hidden" risk. If another major state like New York or New Jersey hikes taxes, expect another 5-10% slide in the share price regardless of how many bets are being placed.
- Earnings Volatility: DraftKings has a habit of moving 10% or more on earnings days. If you aren't comfortable with that kind of swing, you might want to wait until after the February 12th report to make a move.
The bottom line is that the dkng stock price today per share reflects a company at a crossroads. They have the brand, they have the users, and they have the tech. Now they just have to prove to Wall Street that they can actually keep the money they are making.
Next Steps for Your Portfolio:
- Review your exposure: Given the 8% drop, ensure DKNG doesn't represent more than 3-5% of your total portfolio if you're risk-averse.
- Set a Price Alert: Put an alert for $31.00. If it hits that, it might be time to re-evaluate the technical setup for a potential entry.
- Check the Q4 Estimates: Compare the current $32.62 price to the upcoming February earnings expectations ($0.71 EPS estimate) to see if the "implied" P/E makes sense for your strategy.