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DraftKings Inc. (DKNG)

Consumer Cyclical Out of favour

DraftKings is a digital sports entertainment company that lets users place bets on sports and play fantasy games through its mobile app.

$23.48

Is DraftKings Inc. a good stock for a UK beginner?

The honest version: DraftKings is a digital sports entertainment company that lets users place bets on sports and play fantasy games through its mobile app.

No rating · no target price · nothing for sale here
Price-33.8%
Priced in USD - as a UK investor your £ return also moves with the pound-to-dollar exchange rate, on top of the share price itself.
52-week range-46% past year
$23.48
Low $20.46High $48.78
Where today's price sits versus its past year - context, not a signal.
If you had put $1,000 into DraftKings Inc.
$662-34%

Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$11.65B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
12.37M
Day range: The lowest and highest price the shares traded at during the latest day.
$23.31 – $24.05
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$20.46 – $48.78
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
260.9
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
0.0%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
1.64
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 1.64
Calm
Wild
Bumpier than the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▼ -1% past week · ▼ -46% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Dominant market share and sustained profitability.

The bear case

Stricter government regulations limiting betting options.

What does DraftKings Inc. do?

DraftKings operates a popular online platform where people can bet on sports matches and participate in fantasy leagues. A small slice of the wagers placed on its platform, together with advertising, is what keeps the lights on. How they balance the high costs of attracting new customers against their goal of becoming consistently profitable is what to watch.

VQGMI
Factor profile

On our factor screen it looks strongest on growth and value, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 42Quality: How profitable and financially healthy the company is (higher = stronger). 35Growth: How fast revenue and earnings are growing (higher = faster). 70Momentum: How the share price has been trending recently (higher = stronger recent run). 11Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 16
Quick checks
What's strong
  • Growth screens high (70/100)
  • Strong brand recognition in the sports betting space
  • High gross margins indicate a scalable digital business model
  • Growing revenue base as more regions legalise sports betting
What to watch
  • Momentum screens low (11/100)
  • Income screens low (16/100)
  • Heavy reliance on changing government regulations and gambling laws
  • High share price volatility compared to the broader market
  • Intense competition from other established betting platforms

What do DraftKings Inc.'s numbers mean?

Forward P/E
14.8
This compares the share price to expected future earnings, suggesting investors are looking ahead to potential profit growth rather than current losses.
P/S
2.0
This shows how much investors are paying for every pound of revenue the company generates, helping to gauge how expensive the stock is relative to its sales.
Gross margin
76.7%
This indicates that for every pound of revenue, a large portion remains after covering the direct costs of running the betting platform.
Beta
1.6
A number higher than 1 means the share price tends to be more volatile and jumpier than the wider stock market.

How much money does DraftKings Inc. make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$497.30M$994.60M$1.49B$1.99BQ1 25Q2 25Q3 25Q4 25Q1 26
Gross margin
76.7%
Net margin
0.9%
Return on equity
7.9%

Does DraftKings Inc. pay a dividend?

No - DraftKings Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.

More in Consumer Cyclical

Booking HoldingsExpedia GroupeBay Inc.Hilton Worldwide Holdings Inc.Yum! Brands, Inc.Las Vegas Sands Corp.Marriott International, Inc.Casey's General Stores, Inc.

What are the scenarios for DraftKings Inc.?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

$37$23$17today · $23▲ Bull · $26• Base · $23▼ Bear · $20in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+10% to +15%Stronger than expected betting activity during a major sports season.
Base
-5% to +5%Steady user growth in line with current market trends.
Bear
-10% to -20%Higher marketing costs eating into the bottom line.

What are the pros and cons of DraftKings Inc.?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Strong brand recognition in the sports betting space
  • High gross margins indicate a scalable digital business model
  • Growing revenue base as more regions legalise sports betting
The catch3
  • High marketing costs required to acquire and keep users
  • Very thin net profit margins
  • No dividend payments for shareholders
Key risks3
  • Heavy reliance on changing government regulations and gambling laws
  • High share price volatility compared to the broader market
  • Intense competition from other established betting platforms
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: USD · flags: earnings_growth · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.