DraftKings (DKNG) shares are soaring on Friday after the company officially launched its highly anticipated prediction markets exchange (DKeX).
Adding to bullish momentum in DKNG today is a price target increase from Citizens to $36 a share, which signals potential upside of more than 45% from current levels.
The June 26 rally brings much-needed reprieve to DraftKings stock, which is otherwise down roughly 30% versus the start of this year.
Does the DKeX Launch Warrant Buying DraftKings Stock?
The DKeX rollout marks DraftKings’ formal expansion beyond traditional sports betting and into the rapidly growing prediction markets space.
Because prediction markets operate 24/7 and aren’t tied to sports calendars, they equip DKNG with a more stable, year‑round engine for engagement.
According to the Nasdaq-listed firm, DraftKings Predictions generated a whopping $3.4 billion in annualized consumer volume and $11.3 billion in annualized total trading volume last week.
Driven by massive interest in the ongoing FIFA World Cup and MLB contracts, user engagement is scaling at an unprecedented rate, reinforcing that consumer demand for the offering is real.
The DKeX announcement even helped DKNG shares break above their 100-day moving average (MA) this morning, signaling shifting momentum in favor of the bulls.
DKNG Shares to Rally as Free Cash Flow Hits New Milestones
From a financial perspective, DKeX launch represents a massive structural victory for DraftKings shares.
By keeping the platform entirely proprietary and vertically integrated, the Boston-headquartered firm secures complete ownership over its underlying tech, content depth, and end-to-end customer experience.
More importantly, this setup optimizes DKNG’s operating economics as well by eliminating third-party tech fees, which may translate to improving profit margins over time.
According to Citizens analysts, the prediction markets venture could help DraftKings drive its free cash flow to $633 million this year, and push it higher to $1.1 billion in 2027.
That said, Barchart holds a “44% SELL” opinion on the stock, indicating technical momentum is currently against it.
Wall Street Remains Bullish on DraftKings
Investors could still take heart in the fact that Wall Street analysts remain bullish as ever on DKNG stock for the next 12 months.
The consensus rating on DraftKings sits at “Moderate Buy,” with the mean price objective of nearly $34 signaling potential for a more than 35% upside from here.
