DraftKings at Wells Fargo conference: growth spans sportsbook and prediction markets

DraftKings (DKNG) showcased its broad growth prospects at the Wells Fargo 9th Annual Consumer Conference, highlighting the success of its core sportsbook alongside rapid expansion in prediction markets. The sportsbook handle grew by 15% year-over-year at the outset of the NFL season, assuaging fears that prediction markets might negatively impact the core business.

Prediction market volume surged nearly 2.5 times from July to September, positioning DraftKings as the leading sports product in this market. The company is on track to generate approximately $1 billion in adjusted EBITDA by 2026, with further growth anticipated in 2027. In the iGaming sector, management reported share gains across several states, driven by product enhancements and a stronger rewards program.

CEO Jason Robins reported a robust start to the NFL season for the sportsbook, with handle growth exceeding expectations. Despite the volatility in stock prices, InvestingPro data suggests DraftKings is currently undervalued, making it one of the most undervalued stocks.