Early Bird Prime for October 11, 2026

2026 has been a year for DraftKings $DKNG ( ▼ 1.46% ) that even the most daring gamblers would think twice about betting on. The stock has taken a nosedive, plummeting 45.09%. This unfortunate freefall has been fueled by disappointing financial results, overly cautious guidance, fierce competition in the prediction-market arena, and operating pressures.

Just when you thought the odds were stacked against DraftKings, a Bank of America analyst praised the stock a few days ago. In a move that surprised many, the analyst upgraded the stock from Neutral to a Buy rating. Why, you ask? Well, apparently, prediction markets are looking more promising. The analyst believes that earnings have hit rock bottom and that the potential rewards of investing in DraftKings now outweigh the risks.

The Bank of America analyst is betting big on DraftKings' ability to rake in the dough from prediction-market fees. They estimate a cool $400 million in 2027, with an additional $200 million to $400 million from market-making activities.

Analysts are also crunching numbers, estimating a normalized EPS of approximately $0.88 for 2026 and $1.68 for 2027. With the stock hovering around $20 per share, that implies about 12 times estimated 2027 earnings. This is potentially attractive if DraftKings can keep the earnings growth train chugging along.

Should you buy DraftKings' stock right now in 2026, or should you avoid it? Here’s the answer…