DraftKings Projects Up to $800M From DKeX as Bank of America Upgrades Stock
DraftKings, Inc. Class A (NASDAQ:DKNG) is projecting $600 million to $800 million in annual revenue from its new DKeX platform by 2027. Launched in June 2026 as a CFTC-regulated event-contract service, DKeX generates income through fees and market-making. Following the rollout, Bank of America upgraded DraftKings to a Buy rating with a $27 price target. The company has also partnered with Flutter Entertainment to launch a U.S. prediction market offering non-sports wagers.
The strategic expansion comes as DraftKings stock faces ongoing headwinds, trading near $19 with a market capitalization of roughly $9.7 billion. Shares are down approximately 44% year-to-date, trading close to a 52-week low of $18.52. While the stock saw insider sales in August 2026 and ARKF exited its holdings during a fund reshuffle, institutional buying has also been recorded.
Investors will be watching whether revenue growth from DKeX and non-sports prediction contracts can offset recent stock pressure and move DraftKings toward its 2027 financial targets. Market participants will also monitor whether institutional support builds following the recent broker upgrade.
Key points
- DraftKings projects DKeX platform revenue of $600M to $800M by 2027 from market-making and fees.
- Bank of America upgraded DraftKings (NASDAQ:DKNG) to Buy with a $27 price target following the DKeX launch.
- DraftKings launched a U.S. prediction market for non-sports wagers in partnership with Flutter Entertainment.
- Shares of DraftKings trade near $19, down roughly 44% year-to-date and close to its 52-week low of $18.52.
- ARKF exited its DraftKings position during a fund reshuffle, though institutional buying was also noted.
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How we writeDisclaimerQuestions and answers
What is DraftKings projecting for DKeX revenue?
DraftKings projects $600 million to $800 million in revenue from its DKeX platform by 2027, generated through fees and market-making.
Why did Bank of America upgrade DraftKings stock?
Bank of America upgraded DraftKings to Buy with a $27 price target, citing potential revenue of $600 million to $800 million by 2027 from the DKeX rollout.
How has DraftKings stock performed year-to-date?
DraftKings shares are down approximately 44% year-to-date, trading near $19 and close to a 52-week low of $18.52 with a market capitalization of about $9.7 billion.