{
  "id": 5649270,
  "title": "Could DKNG Be a 50% Rebound Stock?",
  "url": "https://urgent.news/2026/09/03/could-dkng-be-a-50-rebound-stock",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-03T14:30:51.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/could-dkng-50-rebound-stock-143051114.html"
  },
  "original_language": "en",
  "account": "DraftKings (DKNG) has experienced a 51% decline over the past year, currently trading at $24.42. Bulls are questioning whether a 50% rebound is feasible, with our 24/7 Wall St. price target suggesting a $22.56 valuation for the next 12 months. This target implies a 7.69% downside, assigning a hold rating to the stock. The company's sportsbook margins have been struggling, with adjusted EBITDA collapsing to $114.60 million from $300.64 million, as unfavorable sports outcomes and Predictions launch spending impacted margins. Despite these challenges, there are signs of potential recovery. July sportsbook handle was up 20% year-over-year post World Cup, and customer acquisition costs were better than anticipated. Additionally, the Predictions product has shown impressive growth, with annualized volume traded jumping from $2.3 billion to $11 billion between April and July. However, the stock has been under pressure, trading below the 52-week high and missing revenue and adjusted EPS expectations in Q2 2026. Our model's bullish scenario sees DKNG reaching $47.61 in 12 months, implying a substantial 94.85% upside, should Predictions scale into a second engine and sportsbook margins normalize. On the other hand, a bearish scenario could price the stock at $21.32, representing a 12.76% downside, if regulatory hurdles on event contracts intensify. Currently, our top analysts rate DKNG as a hold, with a price target of $22.56 that reflects a disconnect between the current forward EPS profile and the stock's current price. For a potential 50% rebound, successful sportsbook margin recovery above 7% and reaching one million active customers in Predictions are essential conditions. Boosts from California or Texas legalization could also contribute to upside, while regulatory action on event contracts may align with the more bearish projection.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}