DraftKings Faces Q4 Revenue Challenges

DraftKings is facing challenges in the fourth quarter of 2024 due to favorable NFL outcomes for bettors, which have led analysts to revise revenue expectations down from $1.5 billion to just under $1.4 billion. JPMorgan's Joseph Greff noted that the company experienced a significant drop in cash flow, lowering his forecast by $100 million to $68 million, as DraftKings held only 7% of bets compared to the industry average of 7.2%. Despite these setbacks, Greff maintains a positive outlook for DraftKings, projecting $6.4 billion in revenue for 2025 and continued growth in subsequent years. The company's solid cash position, with $1.7 billion in reserves, positions it well for future opportunities. DraftKings' stock recently closed at $37.25, slightly down from the previous day and significantly below its 52-week high. The investment community is watching closely as the company prepares for its upcoming earnings report amidst shifting analyst projections.