Investing
DraftKings (DKNG) Stock Falls 29% After Guidance Cut
DraftKings stock fell 29.3% on November 6, 2026 after a DraftKings guidance cut tied to spending on a new prediction market business and a quarterly loss.
DraftKings (NASDAQ: DKNG) shares were down 29.3% in regular trading on November 6, 2026, as of mid-session. The drop followed a DraftKings guidance cut, meaning the company lowered its own forecast of future earnings, as it raises spending on a new prediction market business.
What happened
Alongside the lower outlook, DraftKings posted a quarterly loss and revenue that fell short of analyst estimates. The Financial Times reported the guidance cut at 10:46 UTC that morning, before the US market opened.
The extra spending is aimed at building a prediction market platform. Prediction markets let users trade contracts on the outcome of real-world events.
Why the stock fell 29.3%
The fall is about nine times the size of a typical day's swing for the stock, an exceptionally large move. Three negatives arrived together: a lower earnings forecast, a loss for the quarter and revenue below expectations. The higher costs from entering a new business also cloud how quickly that spending could pay off.
What to watch next
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Future quarterly reports showing the cost of the prediction market push
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Updates on the launch and scale of the prediction market business
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Competitive moves by existing prediction market platforms
FAQ
Who is DraftKings competing with in prediction markets?
The company is positioning itself against Kalshi and Polymarket, the established prediction market platforms.
How big is DraftKings?
Before this session, DraftKings had a market value of about $9.76 billion and trades on the Nasdaq.
Sources
This article is for information only and is not investment advice.