NEW YORK, June 10, 2026, 05:02 (EDT)
- DraftKings shares ended up 11.34% on Tuesday as the company said its Predictions product saw a pickup in activity in May.
- The company called the numbers preliminary and unaudited. Investors will have to see how they hold up once future revenue comes in.
- Broader U.S. tech indexes dropped Tuesday, putting DKNG in focus with its move.
DraftKings shares moved higher Tuesday after the company reported a surge in activity for its Predictions business in May. The product line has become a key focus for investors as they look ahead to 2026.
The stock ended the session up 11.34% at $27.59, after touching $27.64 intraday, Investing.com data showed. Before U.S. markets opened on Wednesday, shares were quoted at $27.84, up 0.91%. Nasdaq’s 2026 holiday calendar doesn’t show June 10 as a market holiday.
Why it matters now: DraftKings is still out to prove prediction markets are more than just an expensive gamble. These markets let people trade contracts based on events, not place regular bets like at a sportsbook.
DraftKings reported in an 8-K on June 9 that annualized consumer volume for its Predictions product jumped 24% month on month to $1.3 billion in May. Annualized total volume traded climbed 34% from April to $3.1 billion. The company noted these numbers are preliminary, unaudited, and pulled from internal records, so they could be revised.
The move sent the stock in a different direction from the main indexes. The Nasdaq Composite dropped 0.97% Tuesday, while the S&P 500 slipped 0.26%. Tech stocks dragged the market lower, according to Reuters.
DraftKings CEO Jason Robins again talked up Predictions as a key move after first-quarter earnings. “Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in Predictions,” Robins said in May. He said DraftKings wants to be out in front in sports predictions by year-end. SEC
The June 9 filing put out a sharper number for investors to work with. Annualized volume doesn’t equal revenue, since it just stretches out a slice of trading into a yearly pace. But it does let the market see if customers are actually trading.
The move is important as competitors are active too. Flutter Entertainment’s FanDuel runs FanDuel Predicts, but Flutter said first-quarter revenue from that product wasn’t material. Guidance for the rest of the year didn’t include revenue from FanDuel Predicts.
DraftKings said CEO Jason Robins will join the Nasdaq Investor Conference with Jefferies at 6:00 a.m. EDT Wednesday, putting management out in front of investors less than a day after the filing. DraftKings said its sportsbook is live in 30 states, Washington, D.C., Puerto Rico, and Ontario. DraftKings Predictions is providing federally regulated event contracts under CFTC oversight.
The risk comes down to volume not translating to profit fast enough. Prediction-market activity could see an uptick, but revenue might stay limited, customer acquisition costs could go higher, or regulators could get stricter about separating event contracts from sports betting.
Peer competition is an issue here. FanDuel, Kalshi, Polymarket, and others all want the same users and liquidity. DraftKings brings name recognition and sportsbook chops, but that doesn’t mean it will have deep pricing or stable margins. The market is still unsettled.
Investors are taking the May numbers as a win for now. The next thing to watch is if DraftKings can prove Predictions brings in more revenue but doesn’t weigh on profits, something management has been working to guard.
