DraftKings Reports Strong Start To 2026 With Q1 Double Beat - DraftKings (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) reported first-quarter earnings on Thursday after the market closed. Here’s a look at the key details from the report.

DraftKings stock is showing exceptional strength. What’s driving DKNG stock higher?

Q1 Highlights

DraftKings reported adjusted earnings per share of 20 cents, beating the consensus estimate of 2 cents. In addition, it reported revenue of $1.646 billion, beating the consensus estimate of $1.644 billion.

The company said customer acquisition and healthy customer engagement contributed to the revenue growth.

"We are off to a fantastic start to the year as our first quarter results exceeded our expectations," said CEO Jason Robins.

DraftKings ended the first quarter with 4.2 million monthly unique payers, down 4% year-over-year. Excluding the exit of Lottery in Texas, monthly unique payers increased 2% year-over-year.

Average revenue per monthly unique payer was $131 in the first quarter, up 21% year-over-year.

DraftKings said it was live with mobile sports betting in 27 states, Washington, D.C. and Puerto Rico during the quarter, representing approximately 53% of the U.S. population. The company also offered iGaming in five states, representing approximately 11% of the U.S. population.

In Canada, DraftKings said it was live in Ontario with sportsbook and iGaming offerings, serving approximately 40% of the country's population

Longer-Term Weakness Continues To Loom Over DraftKings Shares

DraftKings is currently showing a bullish setup as it trades above its 20-day and 50-day simple moving averages (SMAs), indicating positive short-term momentum. However, it’s important to note that DraftKings’s stock is still below its 100-day and 200-day SMAs, which suggests a bearish long-term trend.

The RSI is currently at 70.13, placing it in overbought territory, which could signal that the stock may be due for a pullback or consolidation. This high RSI level indicates strong momentum, but traders should be cautious as it often precedes a reversal.

MACD is above its signal line, indicating bullish momentum for DraftKings Inc. This suggests that the current upward trend may have some strength, but traders should remain alert for any signs of weakening.

Key support is at 21.00 and resistance at 26.50, which are critical levels to watch. If DraftKings Inc.’s stock breaks above 26.50, it could signal a continuation of the upward trend, while a drop below 21.00 may indicate a potential reversal.

DraftKings has not experienced any golden or death crosses recently, but the positioning of its moving averages shows a bearish long-term trend, with the 50-day SMA below the 200-day SMA. This relationship suggests that traders should be cautious about the stock’s long-term outlook.

Looking at the 12-month performance, DraftKings’s stock is down 26.11%, reflecting a challenging year for the company. This longer-term trend underscores the importance of monitoring key levels and indicators as traders navigate the current market environment.

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DraftKings Shares Edge Higher

DKNG Price Action: DraftKings shares were up 5.08% at $26.50 on Friday, according to Benzinga Pro. Over the past month, DKNG has gained about 10.1% versus a 8.2% rise in the S&P 500 and is down roughly 25% year-to-date compared to the index’s 6.7% gain.

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DKNGDraftKings Inc

$25.05-0.28%

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