New York, Feb 17, 2026, 15:57 EST — Regular session
- DraftKings shares were up about 4% in late afternoon trade, bouncing off an earlier dip.
- A filing showed Janus Henderson held a 5.1% stake as of Dec. 31.
- Analysts trimmed price targets, and investors are looking to DraftKings’ March 2 investor day for more detail.
DraftKings Inc shares rose about 4.2% to $22.67 in late afternoon Nasdaq trading on Tuesday, after earlier touching $21.15. Volume was about 20.7 million shares.
The stock has swung hard since DraftKings laid out a 2026 outlook that includes heavier spending on its DraftKings Predictions business. The company forecast 2026 revenue of $6.5 billion to $6.9 billion and adjusted EBITDA — earnings before interest, taxes, depreciation and amortisation, adjusted for certain items — of $700 million to $900 million. (Securities and Exchange Commission)
That Predictions push has also landed in a louder fight over what counts as a bet and what counts as a financial contract. The Commodity Futures Trading Commission has been backing prediction market operators as states move to block them, and chair Michael Selig warned challengers: “we will see you in court.” Prediction markets let users buy and sell contracts that pay out if an event happens. (AP News)
In a separate development, a securities filing showed Janus Henderson Group plc reported beneficial ownership of 25,313,909 DraftKings Class A shares, or 5.1% of the class, as of Dec. 31. The filing said the shares were held across managed portfolios for clients. (Securities and Exchange Commission)
On the sell-side, Bernstein SocGen Group cut its DraftKings price target to $28 from $32, keeping an Outperform rating. Analyst Ian Moore wrote that “March 2 will be pivotal,” adding the company’s “soft guide left something to be desired” for investors pressing for near-term visibility. (Investing)
TD Cowen also lowered its price target to $30 from $45 while maintaining a Buy rating, pointing to the near-term cost of expanding prediction markets. The firm said its target reflected 20 times its fiscal 2026 EBITDA estimate. (Investing)
Peers were mixed on the day. Caesars Entertainment rose about 3.4%, while FanDuel-parent Flutter slipped about 0.7% and MGM Resorts was little changed. The broader market was choppy, with the S&P 500 ETF SPY slightly higher and the tech-heavy QQQ slightly lower.
But the risks are still the same ones that spooked traders last week: a long legal slog over prediction markets, a slower payoff from new customer spend, and the chance that the new product shifts wagers around instead of adding new ones.
Investors’ next hard date is DraftKings’ virtual investor day on March 2 at 9:00 a.m. ET, when management plans to lay out its financial framework and capital allocation priorities. (Globenewswire)
