New York, Feb 17, 2026, 15:57 EST — Regular session
- DraftKings shares climbed roughly 4% in late afternoon trading, recovering from an earlier slide.
- Janus Henderson disclosed a 5.1% holding as of Dec. 31, according to a filing.
- Several analysts have cut their price targets, while investors now await DraftKings’ March 2 investor day for further insight.
DraftKings Inc shares popped roughly 4.2% to $22.67 late Tuesday afternoon on the Nasdaq. Earlier, the stock hit a low of $21.15. Trading volume came in at around 20.7 million shares.
DraftKings shares have been on a rollercoaster since the company revealed its 2026 outlook, highlighting bigger investments in its DraftKings Predictions unit. DraftKings is projecting revenue between $6.5 billion and $6.9 billion for 2026, with adjusted EBITDA — a measure that strips out interest, taxes, depreciation, amortisation and certain other items — pegged at $700 million to $900 million. 1
The Predictions rollout has stirred up a noisy dispute about the line between betting and financial contracts. The Commodity Futures Trading Commission has thrown support behind prediction market operators, stepping in as states work to shut them down. Chair Michael Selig didn’t mince words for opponents: “we will see you in court.” Prediction markets function by letting people trade contracts tied to specific event outcomes. 2
Janus Henderson Group plc disclosed it held 25,313,909 DraftKings Class A shares—about 5.1% of that share class—according to a securities filing dated Dec. 31. The report noted these shares are spread across client-managed portfolios. 3
Bernstein SocGen Group lowered its price target on DraftKings to $28 from $32 but maintained an Outperform rating. Analyst Ian Moore called out March 2 as “pivotal,” noting the company’s “soft guide left something to be desired” for investors looking for clearer near-term signals. 4
TD Cowen cut its price target on the stock to $30 from $45 but kept its Buy rating in place, citing short-term spending tied to growing prediction markets. The new target, they said, is based on 20x their EBITDA forecast for fiscal 2026. 5
Casino stocks moved in different directions this day. Caesars Entertainment tacked on roughly 3.4%, FanDuel-owner Flutter dropped 0.7%, and MGM Resorts didn’t budge much at all. As for the wider market, SPY managed a small gain, but tech names in the QQQ edged down.
Still, traders remain wary—last week’s jitters haven’t gone anywhere. The prospect of a drawn-out legal fight over prediction markets hangs over things. There’s also the slow burn of turning fresh customer spending into actual returns, not to mention the risk that the new product just shuffles existing bets rather than pulling in new money.
The big event circled for investors: DraftKings’ virtual investor day on March 2, set for 9:00 a.m. ET. That’s when management is expected to outline its financial framework along with how it plans to allocate capital. 6
