DraftKings Tanks On Q4 Results; Cathie Wood Unloads More Shares
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DraftKings stock unraveled Friday after the sportsbook and prediction markets operator missed earnings estimates and provided a lower-than-expected outlook. DKNG's drop bled over to FanDuel parent Flutter Entertainment (FLUT). Cathie Wood and ARK Invest off-loaded DraftKings stock on Thursday — and gobbled up more crypto stocks.
The Rise Of Prediction Markets: Are New Platforms Turning Brokers Into Bookies?
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DraftKings (DKNG) reported that Q4 earnings improved to 36 cents per share adjusted from 14 cents per share last year, but still fell short of estimates for 39 cents per share. Revenue spiked 43% to $1.989 billion, just below views for $1.99 billion.
The sportsbook reported that monthly unique players were unchanged from last year at 4.8 million, while FactSet expected the number of players to grow to 5.26 million.
Still, the average revenue per unique player increased 43% to $139, easily topping expectations for $124 per player.
CEO Jason Robins in the release highlighted the potential for the company's prediction markets business. DraftKings earlier this month announced a partnership with Crypto.com to expand its prediction markets offerings.
"We also see a massive, incremental opportunity in DraftKings Predictions. We plan to deploy growth capital to build the best customer experience in Predictions, and acquire millions of customers," he said.
However, DraftKings' outlook was solidly below estimates. The sportsbook guided for 2026 revenue between $6.5 billion and $6.9 billion, which includes the expected investments in DraftKings Predictions. Analyst polled by FactSet expect 2026 revenue to increase more than 19% to $7.2 billion. DKNG Stock Tumbles
DKNG stock swooned 13.5% Friday, falling back to April 2023 levels.
Share have been on a downtrend the past six weeks and have carved below support at their key moving averages.
DraftKings has tumbled 37% this year.
Flutter Entertainment shares retreated 11.5% Friday to extend its steep downtrend stretching back to August. Shares of the FanDuel parent are down more than 41% so far this year. Cathie Wood Sells DraftKings, Buys Crypto Stocks
Elsewhere, Cathie Wood and her ARK Invest firm on Thursday off-loaded a sizable chunk of their DraftKings holdings, according to daily trade updates.
Wood on Thursday sold a total of 680,371 shares of DraftKings stock across the ARK Innovation ETF (ARKF), ARK Next Generation Internet ETF (ARKW) and the ARK Blockchain & Fintech Innovation ETF (ARKF).
The sales were worth nearly $17.12 million, based on DraftKings' Thursday closing price of 25.16.
DraftKings now makes up just 0.56% of the ARK Innovation ETF. The sportsbook represents 0.91% of the ARKW ETF and 2.15% of the ARKF ETF, respectively, as of Friday. IBD Newsletters
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- HARRISON MILLER
- Updated 04:42 PM ET 02/13/2026
DraftKings stock unraveled Friday after the sportsbook and prediction markets operator missed earnings estimates and provided a lower-than-expected outlook. DKNG's drop bled over to FanDuel parent Flutter Entertainment (FLUT). Cathie Wood and ARK Invest off-loaded DraftKings stock on Thursday — and gobbled up more crypto stocks.
The Rise Of Prediction Markets: Are New Platforms Turning Brokers Into Bookies?
See All Videos
DraftKings (DKNG) reported that Q4 earnings improved to 36 cents per share adjusted from 14 cents per share last year, but still fell short of estimates for 39 cents per share. Revenue spiked 43% to $1.989 billion, just below views for $1.99 billion.
The sportsbook reported that monthly unique players were unchanged from last year at 4.8 million, while FactSet expected the number of players to grow to 5.26 million.
Still, the average revenue per unique player increased 43% to $139, easily topping expectations for $124 per player.
CEO Jason Robins in the release highlighted the potential for the company's prediction markets business. DraftKings earlier this month announced a partnership with Crypto.com to expand its prediction markets offerings.
"We also see a massive, incremental opportunity in DraftKings Predictions. We plan to deploy growth capital to build the best customer experience in Predictions, and acquire millions of customers," he said.
However, DraftKings' outlook was solidly below estimates. The sportsbook guided for 2026 revenue between $6.5 billion and $6.9 billion, which includes the expected investments in DraftKings Predictions. Analyst polled by FactSet expect 2026 revenue to increase more than 19% to $7.2 billion. DKNG Stock Tumbles
DKNG stock swooned 13.5% Friday, falling back to April 2023 levels.
Share have been on a downtrend the past six weeks and have carved below support at their key moving averages.
DraftKings has tumbled 37% this year.
Flutter Entertainment shares retreated 11.5% Friday to extend its steep downtrend stretching back to August. Shares of the FanDuel parent are down more than 41% so far this year. Cathie Wood Sells DraftKings, Buys Crypto Stocks
Elsewhere, Cathie Wood and her ARK Invest firm on Thursday off-loaded a sizable chunk of their DraftKings holdings, according to daily trade updates.
Wood on Thursday sold a total of 680,371 shares of DraftKings stock across the ARK Innovation ETF (ARKF), ARK Next Generation Internet ETF (ARKW) and the ARK Blockchain & Fintech Innovation ETF (ARKF).
The sales were worth nearly $17.12 million, based on DraftKings' Thursday closing price of 25.16.
DraftKings now makes up just 0.56% of the ARK Innovation ETF. The sportsbook represents 0.91% of the ARKW ETF and 2.15% of the ARKF ETF, respectively, as of Friday. IBD Newsletters
