DraftKings Inc.

In this episode of Motley Fool Money, analysts Emily Flippen and Sanmeet Deo and contributor Jason Hall break down what prediction markets are, why they exploded, how regulators view them, and the smartest ways investors might (or might not) get exposure.
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A full transcript is below.
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This podcast was recorded on Oct. 21, 2025.
Emily Flippen: Prediction markets are having a moment. From fed odds to football, betting platforms are soaring. But how should investors use them? We're discussing today on Motley Fool Money. It's Tuesday, October 21st. Well, motley Fool money. I'm your host, Emily Flippen, and today I'm joined by Fool analysts Jason Hall and Sanmeet Deo as we dive into the growing world of prediction markets, we'll be talking about how investors can play the trend, and if investing, it's really that different than just gambling itself. But first, let's discuss what even is a prediction market because I know I can't speak for our listeners, but speaking for myself, this was an industry that I didn't even know existed prior to 2025. I mean, platforms like Kalshi and Polymarket, two of the most popular prediction platforms just seem to pop up overnight. Now, billions of dollars are flowing through these sites annually. What happened to cause this industry to explode?
Sanmeet Deo: Well, prediction markets, basically, in essence, if you think of the movie Rat Race, where the rich guys are betting on anything and everything happening in the whole, like the movie, that's what prediction markets are. The recipe for the explosion was really legal, well funded, and user friendly product that lets anyone trade on, real world events, like New York City Mayor election, top artists on Spotify, the existence of aliens. Kalshi she is one of them, which became the first CFTC regulated exchange. That was a game changer because it made the entire space feel legitimate and safe. That legitimacy opened the door for institutional investment. Most notably, which we'll talk about a little later is International Continental Exchange, which is the owner of the New York Stock Exchange, investing two billion into Polymarket, giving those platforms, money to fund their growth in product development. Then finally, unlike clunky older platforms, Kalshi and Polymarket they're very easy and cheap to use.
Emily Flippen: I mean, Jason, when I look at this industry, it just feels like gambling to me. I can understand the argument that one may point at this and say, to, Sanmeet's point. I mean, this is almost like a regulated financial market where these are operating almost as options contracts on specific real world events. But on the other hand, how is this different from gambling? Like what happened in the regulatory environment to allow these prediction markets to effectively crop up overnight?
Jason Hall: This is gambling. Legally it exists and this is where it's different than what we've seen from Draft Kings and Fandol and MGM and Caesars have their betting sites. Those are regulated by the states. I think they're legal in about 30 states. Basically what happened is Kalshi bought a CFTC regulated exchange. Now they're saying, this is our business. The difference is they're not the house where you're betting directly with the platform. You're betting the outcome with Caesars. You're making a bet with a counter parity on the other end and this is the platform that exists for you to be able to do that. They're taking a rake of that, the fees and things that they charge. That's how it exists because it's the same structure that's in place for commodities trading. Where it's different than commodities trading is if you participate in a commodities trade from the beginning to the end, you either have to pay to buy a commodity or somebody's going to give you money and you're going to sell them the commodity. The trade is for that thing. These are pure outcome trades. They're able to exist because regulators have allowed it to happen so far. Now, there's still lawsuits going on. The federal government is saying, look, they exist because they're regulated by the CFTC as these exchanges. They're not true betting businesses. A lot of states are pushing back. There are lawsuits right now. These platforms have filed countersuits, so it's all still playing out, we're still trying to just get clarity on it.
Emily Flippen: Well, for the time being, to the extent that regulators are allowing these platforms to exist, you can certainly bet on the fact that more and more individual investors and consumers are going to them, yes, that pun was intended up next for digging into the publicly traded companies that are finding ways to create investor returns through these prediction markets. Stick with us.
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Emily Flippen: Welcome back to Motley Fool Money. Now that we have an idea about what prediction markets are and how they legally operate, let's dive into how investors can play this field. Like all of these vice industries, I recognize that prediction markets are probably a non starter for many investors who want their portfolio to to quote David Gardner, reflect their best vision of the future. But for investors whose best vision of the future includes more gambling opportunities, there always are plenty of publicly traded companies that are finding ways to monetize this new industry. Jason, I know we talked about Robinhood last week, but in March, Robinhood, whose ticker is HOOD launched its own prediction Markets Hub in partnership with Kalshi. It's a section of its app specifically targeted toward these real world event contracts. For investors looking to gain exposure to the prediction markets without participating in the markets themselves, how valuable is buying shares of Robinhood today?
Jason Hall: Robinhood has already told us that the business is seeing some momentum from this, and I think they have exposure to it that's going to probably grow. But I think the thesis for it for Robinhood and really any of the online brokers or even the betting platforms over time has to be more broad. These platforms are seeing explosive growth right now because the betting market was already huge. The friction has been removed right now. Betting prediction markets, if we want to use their nice little PR verbiage that they've put together that regulators have bought hook line and sinker has existed as long as two people were able to have different opinions on the outcome of something and trade something of value for it. Betting has existed as long as humans have. The friction has been removed to allow it to happen. But I think what's going to happen is over time, these platforms, they're not really going to have any serious competitive advantages at scale. They're going to operate as highly competitive price takers. We've already seen this happen with online brokers, over the past half decade, trading fees for stocks and ETFs have essentially disappeared. Options contracts are a lot less expensive than they used to be. If these platforms are going to survive with the prediction markets, you're going to see an explosion in competition. Right now, it's the test bed. The lawsuits and things are going to play out. There's going to be an explosion in competition if this survives the federal government regulating or maybe there's a federal law that gets passed that say, hey, we're just going to take this under the purview of the federal government. Explosion to competition is going to happen and then inevitably, we're going to see consolidation of the winners. Again, I'm going to bring online brokers back into that because that's largely what we've seen. These brokers do a lot more now than they used to as they've consolidated other parts of the financial services industry.
Emily Flippen: Sanmeet, to an extent, we might actually already be seeing what Jason is talking about. To play devil's advocate a little bit, I mean, some of these consolidators have been really decent investments Robinhood especially over the last couple of years, has been a stellar one. But part of the reason why this is such a hot topic right now is because as you mentioned, intercontinental exchange, that tiker's ICE, the company that owns the New York Stock Exchange recently announced a $2 billion investment in Polymarket one of those trading platforms. That gives Polymarket platform a valuation of somewhere around eight to $10 billion. Huge private company that's doing a lot of volume here. I understand to Jason's point, maybe you look at Robinhood and you're like, wow, that investment, that's just way too risky for me, but I'm still interested in playing this market. Is an alternative investment in intercontinental exchange ICE a viable alternative?
Sanmeet Deo: Yeah, I mean, it's not just a viable return. It's for some it might be the smarter one. It's a classic picks and shovels play of the gold rush. It's important not to overstate the investment though that ICE is making in Polymarket. $2 billion sounds like a lot, but given what the trading revenue for ICE is, it's just a small portion of that. Managers says it's not going to be very material over a short period of time here. They're touching into that market because they know it could be something. But instead of betting on a single high risk platform like Robinhood, you're investing in a company that owns the entire financial railroad, ICE isn't speculating. They got the exchanges, the infrastructure, and the profits from the activity itself, and they're taking a small piece of every transaction. Their investment in Polymarket is just building a new track on that booming territory. While investment in Robinhood is a bet on explosive growth, ICE is a bit on the inevitability of trading. You're swapping that electric upside for that stable cash generate compound or that's position no matter which specific platform comes out on top. Mind you, people trade in up and down markets, so they tend to do well in either.
Emily Flippen: Yeah, that's a fair point. When I look at the platforms that have succeeded which is really just so far the Kalshi and Polymarket, there's an understanding that these markets will tend to get bigger depending on network effects, the more people you have trading on the platform, the less friction there is in that exchange, the lower the fees are likely. When you're looking at investment in this space, I how important is it, and this goes to either you Jason or Send me, whoever has an opinion, how important is the platform they're associated with? Is it a matter of just rising tides going to lift all boats? Kalshi, Polymarket doesn't really matter, or is one platform better positioned for success over the other. Therefore, you should be targeting an investment that is focused on that single platform.
Sanmeet Deo: I would say the one with more liquidity, the more volume, the more opportunities to do the trades where you feel more comfortable doing your trades and investments or bets would be the platform that could potentially be leading, but it will rise all tides too. This is going to be multiple platform winners. It's betting is already well over $100 billion. Globally, it's massive. There are some estimates that might be a little off the mark, they're calling this a trillion dollar industry within the next less than a decade. But I think again, that network effect you talked about, that is really important. That's hugely important. But I think if you're hearing nothing about them being into it, but Fidelity or Schwab, these big players, if this turns into something large, they have millions of customers. They have a built in network effect and I think you would see acquisition of some of these platforms over the long term because while they have a lot of potential, we're going to see expansion. I think we could also see maybe the DraftKings and some of those companies maybe look to participate more broadly by finding a regulated exchange that they can acquire to basically what Kalshi did to get into this business and the same thing that we just saw Polymarket do. I think the network effect is probably the most important thing because this is a very profitable, high margin business at scale, and there's going to be lots of capital flowing into it, but nothing I don't think is going to prove to be a true mote beyond stickiness with your customers and offering lots of different services to those customers to keep them.
Emily Flippen: Thanks, guys. Coming up next, we'll close out the show with a reflection on how investing, gambling, and prediction markets are different or really possibly the same. Stay with us.
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Emily Flippen: Welcome back to Motley Fool Money. As we wrap up today's show, I want to expand out and look at the bigger picture around prediction markets. Of course, as part of the demand we're seeing, it's reflected in things like the rise of gambling, as more states have legalized just sports betting, for example, we've seen broad exposure to gambling rise among Americans, but at the same time, studies have shown that younger Americans also distrust financial markets at a rate higher than their older generations. There's a belief that Wall Street is corrupt or weighted against them. Sanmeet, it seems like prediction markets have almost offered this reprieve for people looking to get a return on their money and a system that they perceive is more fair. That depends on the perception of skill rather than luck. Do you think that's part of the reason why they've grown so rapidly?
Sanmeet Deo: That's exactly right. The appeal is the clarity of the outcome. Prediction markets offer a pure test of judgment that you don't find elsewhere. Think about it in poker, you play a perfect hand and still lose a lucky River card. In the stock market, you can be right about a company's future, but then the stock gets dragged down by market sentiment or fed announcement. Your prediction markets strip away all that noise. There's a direct unambiguous link between your foresight and the result. The question is simply, were you right, yes or no? For a skilled risk taker, the clean outcome is the ultimate form of.
Jason Hall: This is a dopamine hit people. Come on, let's be honest. That's what's happening right now is because again, the friction has been removed. This is buying that lottery ticket. I think for the vast number of users, that's the case, as we saw the explosion of day trading in the early 2000s, when online trading became so ubiquitous. Then again, during the pandemic, there was no sports betting around to bet on, it's there and people will have the assumption of skill because it's easy to be able to do. We're going to see a big transition of money from those who think they have skill and those who actually do have skill. I think it's going to remain big. But again, I don't think this is a next big thing or some or uncorrelated asset that we need to have exposure to in our accounts. It's a big part of how financial action happens in the world. We do know that, but whether or not it needs to be something we have exposure to I think is a very, very different question to answer, and it is interesting what's going to happen with the regulatory framework after centuries really, of this being kept in the dark and not legal in most places. Is it now going to become more of a mainstream thing that can be part of the financial services business that we all own?
Emily Flippen: Well, I can understand the argument that these effectively act as contracts as an investor, and maybe this is just me showing my age here, getting a little too old here for the podcast. But there is something nice to me that when I buy an equity, I'm buying aspects of a business that I have underlying economics, underlying cash generative potential. In my mind, these types of contracts are almost more akin to options trading or commodities in the sense that their value depends you're right, Jason, on the perception of value or the perception of skill, not actual cash generation itself. While it has been an interesting industry to watch, it's also one that to your earlier point, I think, well, in addition to some cash generating businesses like Robinhood or Intercontinental Exchange is also something that on an individual contract basis, investors can probably, in my opinion, avoid putting in their portfolios or betting their assets on and probably not miss out on too much in the world today. For now, Jason and Sanmeet, thank you both so much for joining. Listeners, be sure to join us for tomorrow show where Travis will be diving into earning season.
As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows the Motley Fool editorial standards and it's not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. For Jason Hall, Sanmeet Deo, and the entire Motley Fool team, I'm Emily Flippen. We'll see you tomorrow.
Emily Flippen, CFA has no position in any of the stocks mentioned. Jason Hall has no position in any of the stocks mentioned. Sanmeet Deo, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Polymarket, Kalshi, and the Line Between Investing and Gambling

Key Points
DraftKings stock has been under duress as prediction markets have moved into sports betting.
Some analysts say those fears are overblown and that prediction market volume is misunderstood.
The company is already taking steps to allay those concerns and restore investor confidence.
Investors paying attention to sports betting stocks these days are likely aware the industry has caught a virus known as "Prediction Markets Flu." Down 22.6% for the month ended Oct. 21, DraftKings (NASDAQ: DKNG), one of the largest operators in the space, proves as much.
The prediction markets tale of woe incurred by DraftKings and friends started in earnest in late September amid reports that turnover on Kalshi -- one of the biggest yes/no prediction exchanges -- soared to record highs, exceeding totals seen just prior to Election Day 2024. Meanwhile, September brings the early portion of the college football and NFL seasons, and football is the most wagered-on sport in the U.S.
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Combine those factors with DraftKings and other sports betting stocks previously displaying favorable seasonality around football season, and investors were right to wonder, "What the heck is going on with DraftKings?" Those concerns hold clues as to why DraftKings is a viable rebound candidate.
Prediction market concerns overstated
Invest long enough and you will hear terms like "panic selling" and folksy wisdom such as "stocks fall faster than they rise." Both are relevant in discussing DraftKings' recent price action as the stock sold off on reports of Kalshi's soaring football contract volume. To borrow another market pearl of wisdom, they may have "thrown the baby out with the bathwater" without fully understanding the scenario.
What sports betting equity investors may have gotten wrong regarding Kalshi volume is that turnover on the exchange isn't comparable to a sports wagering handle. Handle pertains to the total amount of money bet on an event, whereas volume on a prediction market represents buy and sell orders.
In fact, in the wake of the DraftKings drubbing, at least one analyst argued that media reports assessing Kalshi's volume surge didn't take into account the possibility of that company potentially counting both sides of trades, thus making its volume numbers highly unlike a sportsbook's handle. Interestingly, that argument was framed in the context of the prediction markets drama representing a buying opportunity in stocks like DraftKings.
Then there's the matter of parlays -- long odds, multi-leg wagers that bettors love due to the lottery ticket feel. Sportsbooks like DraftKings love parlays, too, because bettors rarely cash those tickets meaning those bets are profit boosters for gaming companies. Yes, Kalshi and other comparable exchanges are offering football parlays, including those of the same-game variety, but word on the street is that those offerings leave a lot to be desired relative to DraftKings' parlay menu.
Add it all up, and it's not surprising that some analysts maintain the view that prediction exchanges aren't competitive threats to established sportsbook operators. Those are strong points in favor of a possible rebound by the stock.
Speaking of a rebound...
Another reason DraftKings has been in a funk is because some investors interpreted the company as sitting idly by while prediction markets ate its lunch. The Beantown-based gaming operator allayed those concerns late Tuesday of last week, announcing the acquisition of upstart prediction market Railbird Exchange. Judging by the stock's 4.4% jump in after-hours trading Tuesday, investors like the news.
That could be a foundation on which a rebound is built because while the Railbird buy isn't the biggest deal in gaming industry history -- terms weren't even disclosed -- it shows that DraftKings is responsive to competitive threats and willing to push into new arenas when needed. That might be enough to restore investors' confidence.
Should you invest $1,000 in DraftKings right now?
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DraftKings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
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Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Why This Battered Boston-Based Betting Stock Can Bounce Back

DraftKings' (NASDAQ: DKNG) stock price is down roughly 20% in the previous month as increasing competition is worrying investors.
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*Stock prices used were the afternoon prices of Oct. 24, 2025. The video was published on Oct. 26, 2025.
Should you invest $1,000 in DraftKings right now?
Before you buy stock in DraftKings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DraftKings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Is DraftKings Stock Crashing, and Is It a Buying Opportunity?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Express Co. (Symbol: AXP), where a total of 18,165 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 69.7% of AXP's average daily trading volume over the past month of 2.6 million shares. Especially high volume was seen for the $400 strike call option expiring September 18, 2026, with 1,502 contracts trading so far today, representing approximately 150,200 underlying shares of AXP. Below is a chart showing AXP's trailing twelve month trading history, with the $400 strike highlighted in orange:
Verisign Inc (Symbol: VRSN) options are showing a volume of 5,218 contracts thus far today. That number of contracts represents approximately 521,800 underlying shares, working out to a sizeable 69.7% of VRSN's average daily trading volume over the past month, of 748,300 shares. Particularly high volume was seen for the $250 strike put option expiring November 21, 2025, with 857 contracts trading so far today, representing approximately 85,700 underlying shares of VRSN. Below is a chart showing VRSN's trailing twelve month trading history, with the $250 strike highlighted in orange:
And DraftKings Inc (Symbol: DKNG) options are showing a volume of 141,817 contracts thus far today. That number of contracts represents approximately 14.2 million underlying shares, working out to a sizeable 69.5% of DKNG's average daily trading volume over the past month, of 20.4 million shares. Especially high volume was seen for the $32 strike put option expiring October 31, 2025, with 11,015 contracts trading so far today, representing approximately 1.1 million underlying shares of DKNG. Below is a chart showing DKNG's trailing twelve month trading history, with the $32 strike highlighted in orange:
For the various different available expirations for AXP options, VRSN options, or DKNG options, visit StockOptionsChannel.com.
Also see:
Cheapest Stocks Right Now
PulteGroup MACD
ADM Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: AXP, VRSN, DKNG

Key Points
Growth stocks have led the market higher over the last three years.
These three companies are all exhibiting strong revenue growth and expanding profit margins.
With attractive valuations and stock prices below $100, they all make for great buys right now.
The current bull market is now entering its fourth year, and it shows no signs of slowing down. Despite macroeconomic concerns and growing warnings of an AI bubble, many growth stocks have zoomed higher, leading the S&P 500 to produce a total return of 91.5% in the first three years of the bull market that started in October 2022.
Investors just starting out may feel as if they missed the boat, and those actively putting new money into stocks may be searching for new opportunities. The good news is there are still plenty of stocks with tremendous upside that you can buy, even if you only have $100 to invest. In fact, these three stocks look like slam dunks, and each has a share price trading below $100.
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1. DraftKings
Since 2018, when the Supreme Court struck down a law banning sports betting, DraftKings (NASDAQ: DKNG) has leveraged its strong brand name (built in fantasy sports) to become a leader in online sports betting in the United States. It has built on that with major advances in technology to drive more action to its sportsbook.
DraftKings' scale gives it a ton of data that's useful for developing new bet types, expanding to new events, and targeting promotions. Its data also helps it set lines and identify sharp bettors more quickly, limiting its losses. Its technology helps it improve the user experience with innovative live betting products that complement sports viewing.
That puts DraftKings in a great position to take share of the growing sports betting market. Analysts at Grand View Research expect online sports betting to climb at an average rate of 12.8% from 2025 through 2030.
One serious threat to DraftKings, though, is the rise of prediction markets. Prediction markets use regulated futures contracts to enable anyone to effectively bet on events like sports matches, even in states where sports betting isn't legal. They've grown in popularity recently, and DraftKings has applied to join the National Futures Association (NFA) as a step toward entering the space.
Still, at around $35 per share, DraftKings looks like a great opportunity. That price gives it an enterprise value-to-EBITDA ratio of less than 20 based on management's guidance for 2025. With a path toward double-digit revenue growth and EBITDA margin expansion as it scales, it should be able to produce strong earnings growth for years to come.
2. Fortinet
Fortinet (NASDAQ: FTNT) is one of the world's top cybersecurity companies. It made a name for itself with its next-gen firewalls, which used custom chips and software to improve network throughput while increasing security. However, it recently disappointed investors with its inability to capitalize on an ongoing hardware upgrade cycle that management previously saw as a major opportunity.
Despite disappointing hardware sales, Fortinet's expansion into SASE (secure access service edge) and SecOps (security operations) is seeing strong results. SASE billings grew 21% year over year in its most recent quarter and SecOps grew 31%.
These software-based solutions present an excellent earnings growth opportunity built on the foundation of its hardware expertise. Since they're software based, their sales are high-margin recurring revenue and present opportunities to cross-sell customers. That should lead to considerable revenue growth and margin expansion over time as they grow to become a larger share of Fortinet's revenue. As of the second quarter, the two combined to account for 35% of total billings for the company.
The stock currently trades around $83 per share. That price gives it an enterprise value-to-EBITDA ratio of about 25. Fortinet is another company growing sales at a double-digit pace with an expanding operating margin. As a result, its EBITDA multiple in the mid-20s makes it look like a slam dunk.
3. Tencent
Tencent (OTC: TCEHY) is a Chinese internet giant. It's the company behind WeChat (Weixin in China) as well as popular mobile games, including PUBG Mobile and Honor of Kings. It's seeing strong results from advertising, with marketing services revenue growth of 20% last quarter. Management says its ad business is getting a boost from AI-powered ad-tech upgrades impacting everything from ad creation to placement to measurement.
While Tencent already has several major revenue streams, its cloud computing and artificial intelligence efforts could present new growth opportunities going forward. At the start of the year, management laid out plans to use excess cash generated from its social network and gaming businesses, and invest it in the AI opportunity.
While some of its investments have paid off, for example the improvements in its advertising algorithms, most of the build out is a long-term bet. Importantly, the company managed to increase free cash flow despite doubling its capital expenditures year over year in the second quarter.
At around $80 per share, the stock trades for about 21-times analysts' consensus estimate for 2025 earnings. Tencent is yet another company producing double-digit revenue growth and expanding margins while showing progress in even more growth opportunities. That makes it another great growth stock to consider buying with your $100.
Should you invest $1,000 in DraftKings right now?
Before you buy stock in DraftKings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DraftKings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $667,945!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,558!*
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*Stock Advisor returns as of October 20, 2025
Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fortinet and Tencent. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Slam-Dunk Growth Stocks to Buy Right Now With $100

Fintel reports that on October 21, 2025, Truist Securities maintained coverage of DraftKings (NasdaqGS:DKNG) with a Buy recommendation.
Analyst Price Forecast Suggests 65.80% Upside
As of September 29, 2025, the average one-year price target for DraftKings is $55.70/share. The forecasts range from a low of $39.90 to a high of $72.45. The average price target represents an increase of 65.80% from its latest reported closing price of $33.60 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for DraftKings is 4,345MM, a decrease of 19.68%. The projected annual non-GAAP EPS is -1.85.
What is the Fund Sentiment?
There are 1,372 funds or institutions reporting positions in DraftKings. This is an increase of 17 owner(s) or 1.25% in the last quarter. Average portfolio weight of all funds dedicated to DKNG is 0.40%, an increase of 11.58%. Total shares owned by institutions increased in the last three months by 2.11% to 520,958K shares. The put/call ratio of DKNG is 0.46, indicating a bullish outlook.
What are Other Shareholders Doing?
Wellington Management Group Llp holds 23,360K shares representing 4.71% ownership of the company. In its prior filing, the firm reported owning 19,033K shares , representing an increase of 18.52%. The firm increased its portfolio allocation in DKNG by 49.55% over the last quarter.
T. Rowe Price Investment Management holds 18,901K shares representing 3.81% ownership of the company. In its prior filing, the firm reported owning 18,700K shares , representing an increase of 1.06%. The firm increased its portfolio allocation in DKNG by 24.60% over the last quarter.
Janus Henderson Group holds 16,756K shares representing 3.38% ownership of the company. In its prior filing, the firm reported owning 15,026K shares , representing an increase of 10.33%. The firm increased its portfolio allocation in DKNG by 21.30% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 15,181K shares representing 3.06% ownership of the company. In its prior filing, the firm reported owning 14,685K shares , representing an increase of 3.27%. The firm increased its portfolio allocation in DKNG by 19.12% over the last quarter.
JDCAX - Janus Henderson Forty Fund holds 12,817K shares representing 2.58% ownership of the company. In its prior filing, the firm reported owning 11,697K shares , representing an increase of 8.73%. The firm increased its portfolio allocation in DKNG by 21.11% over the last quarter.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Truist Securities Maintains DraftKings (DKNG) Buy Recommendation

Monarch Casino (MCRI) came out with quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $1.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.68%. A quarter ago, it was expected that this casino operator would post earnings of $1.22 per share when it actually produced earnings of $1.44, delivering a surprise of +18.03%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Monarch Casino, which belongs to the Zacks Gaming industry, posted revenues of $142.81 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.82%. This compares to year-ago revenues of $137.87 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Monarch Casino shares have added about 22.3% since the beginning of the year versus the S&P 500's gain of 14.5%.
What's Next for Monarch Casino?
While Monarch Casino has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Monarch Casino was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.45 on $140.4 million in revenues for the coming quarter and $5.57 on $546.75 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, DraftKings (DKNG), is yet to report results for the quarter ended September 2025.
This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +76.7%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level.
DraftKings' revenues are expected to be $1.32 billion, up 20.4% from the year-ago quarter.
Should You Invest in Monarch Casino & Resort, Inc. (MCRI)?
Before you invest in Monarch Casino & Resort, Inc. (MCRI), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Monarch Casino (MCRI) Q3 Earnings Beat Estimates

Key Points
DraftKings is a growth stock that has been thrown in the bargain bin.
The company could skyrocket if sports betting predictions markets are ruled illegal.
E.l.f. has a huge opportunity in front of it with Rhode.
Not every growth stock has gone straight up this year, but that could set some stocks up well to be winners next year.
Let's look at two growth stocks that could skyrocket next year and beyond.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
DraftKings
DraftKings (NASDAQ: DKNG) has had a tough year so far, down nearly 40% from its highs earlier this year, but the story underneath looks very different from the stock chart. The stock hasn't sold off because of anything the company has done. Instead, the decline has been driven over worries that sports-related prediction markets will start to eat into its growth. However, these competitors are operating in a legal gray zone that most states are unlikely to tolerate, given how much tax revenue they pull from online sports betting.
Meanwhile, DraftKings continues to put up impressive growth numbers. Last quarter, revenue jumped 37% to $1.5 billion, driven by strong engagement in its sportsbook and online casino businesses. Same-game parlays remain a huge driver of gross margin expansion, while the company is also seeing operating leverage with sales and marketing expense growth slowing. This helped lead to a 134% surge in adjusted EBITDA to $301 million. The company has clearly turned a corner from its prior heavy-spending, customer-acquisition phase, and is now delivering real profits and free cash flow.
Trading at a forward price-to-earnings (P/E) ratio of about 16.7 times 2026 consensus earnings estimates, the stock looks cheap for a business that's growing revenue quickly and showing strong operating leverage. DraftKings is still a leader in the regulated markets, where casual betters tend to flock. It could eventually move into its own prediction markets, which would give it access to lucrative markets where online sports betting still isn't legal, including two of the largest states in the U.S. in California and Texas. On top of that, a court ruling could wipe away predictions market competition with one stroke of a pen. If it does, the stock will skyrocket higher.
E.l.f. Beauty
E.l.f. Beauty (NYSE: ELF) has been one of the best-performing consumer growth stories of the past few years, but its recent $1 billion acquisition of Rhode could push it to an entirely new level. Rhode, founded by Hailey Bieber, became one of the fastest-growing beauty brands ever, hitting over $200 million in sales in less than three years while selling only a handful of products online with minimal paid marketing. That kind of organic traction is rare, and e.l.f. now has a huge opportunity to plug Rhode into its massive retail and manufacturing network to take it global.
Rhode's launch at Sephora last month showed just how strong the brand already is. Rhode sold an estimated $10 million of product in its first two days, capturing about 35% of Sephora's total sales that day. That's just remarkable. Meanwhile, it will launch at Sephora's U.K. stores later this year.
But's that's likely only the start. E.l.f. already has established strong retail relationships with Ulta Beauty and Target, which are both natural next steps for broader distribution down the line. In addition, Rhode only offers a handful of products. E.l.f. will be able to help Rhode with manufacturing, as well, which should lead to a broader product assortment over time. And finally, Rhode products come at high price points with better gross margins. That's a powerful combination that should help fuel growth both next year and beyond.
Despite its strong growth potential, the stock still trades at an attractive valuation. It has a forward P/E of 31 times next fiscal year's analyst estimates and a price/earnings-to-growth (PEG) ratio of only 0.5, with positive PEG ratios of less than 1 typically considered undervalued.
Between its growth potential and valuation, e.l.f.'s stock is well positioned to skyrocket higher next year.
Should you invest $1,000 in DraftKings right now?
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Geoffrey Seiler has positions in e.l.f. Beauty. The Motley Fool has positions in and recommends Target, Ulta Beauty, and e.l.f. Beauty. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Growth Stocks That Could Skyrocket in 2026 and Beyond

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Morningstar Mid-Cap Growth ETF (Symbol: IMCG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $92.32 per unit.
With IMCG trading at a recent price near $83.47 per unit, that means that analysts see 10.61% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IMCG's underlying holdings with notable upside to their analyst target prices are DraftKings Inc (Symbol: DKNG), DuPont de Nemours Inc (Symbol: DD), and Ventas Inc (Symbol: VTR). Although DKNG has traded at a recent price of $33.98/share, the average analyst target is 56.95% higher at $53.33/share. Similarly, DD has 16.37% upside from the recent share price of $78.37 if the average analyst target price of $91.20/share is reached, and analysts on average are expecting VTR to reach a target price of $77.15/share, which is 13.46% above the recent price of $68.00. Below is a twelve month price history chart comparing the stock performance of DKNG, DD, and VTR:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
iShares Morningstar Mid-Cap Growth ETF
IMCG
$83.47
$92.32
10.61%
DraftKings Inc
DKNG
$33.98
$53.33
56.95%
DuPont de Nemours Inc
DD
$78.37
$91.20
16.37%
Ventas Inc
VTR
$68.00
$77.15
13.46%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
Also see:
HASI YTD Return
GFN Stock Predictions
Institutional Holders of BARD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

We Did The Math IMCG Can Go To $92

Key Points
The sports betting specialist wasn't a good bet during the month, as its shares fell at a double-digit rate.
Competition is intensifying, with smaller wagering companies snapping up business.
September was the month when the new National Football League (NFL) season kicked into high gear. However, you might not know that from the performance of a company eagerly courting the league's many bettors -- next-generation wager specialist DraftKings (NASDAQ: DKNG).
That's because the company's stock sank by 22% that month on the back of several negative factors, including competition and one or more downbeat analyst notes. All in all, the company was likely glad when September ended.
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Here comes fresh competition
DraftKings started the month on something of a high note, as it published market-pleasing quarterly results only a few weeks earlier.
In its second-quarter results, unveiled in early August, it posted its sixth consecutive quarter where it earned over $1 billion in revenue. That metric grew a robust 37% year over year to $1.5 billion, while headline net income doubled and then some to almost $158 million. Both figures easily topped the consensus analyst estimates.
But that's the problem with double-digit growth and profitability; the business world notices, and folks with ambition, drive, and capital do something about it.
The prediction markets space is growing significantly, meaning more and intensifying competition for companies like DraftKings. For example, privately held Kalshi posted record trading volume two days in a row in late September. This worries investors, who likely (and understandably) fear that the barriers to entry in legalized sports wagering aren't high enough to protect DraftKings.
Several pundits and investors pointed this out in new DraftKings takes during the month. One was published by The Bear Cave, a popular online newsletter featuring critiques of high-profile stocks.
The site's Edwin Dorsey cited such competitors as a major reason to be concerned about DraftKings. Of those up-and-comers, Dorsey wrote that their "Better odds, higher liquidity, a simple user interface, and nationwide availability for anyone over 18 have attracted significant customer interest."
Fighting back
To DraftKings' credit, those barbs seem to be intensifying its competitive spirit, if anything. As September came to a close, the company announced it had signed a major advertising agreement with media giant -- and major NFL broadcaster -- NBCUniversal (a unit of Comcast).
In DraftKings' words, this deal will see it "featured across NBCUniversal's extensive portfolio of sports properties, spanning the NFL, PGA TOUR, Ryder Cup, Premier League, NCAA football and basketball, NBA, WNBA, and more."
The company already has quite a presence in sports broadcasting; this is a play at becoming even more ubiquitous. Perhaps this will help it keep those increasingly persistent competitors at bay.
Should you invest $1,000 in DraftKings right now?
Before you buy stock in DraftKings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DraftKings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $642,328!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,134,270!*
Now, it’s worth noting Stock Advisor’s total average return is 1,064% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 7, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	0.00 18.21
Price/Sales	4.38 0.65
P/B	32.82 1.75
P/FCF	296.16 14.46

Indicator	TTM Median
ROE	-41.33 15.91
ROA	-10.30 5.60
Net Worth	19.51 0.91
Quick Ratio	0.00 0.91
Current Ratio	1.00 1.45

Indicator	TTM Median
Net Profit Margin	-9.08 6.40
Operating Margin	-11.16 8.93
Gross Margin	38.50 38.46
Return on tangible equity	43.38 23.70

Indicator	TTM Median
EPS	0.60 0.43
EPS Forecast	0.42 0.39
Revenue	1.10B 184.50M
Gross Profit	353.00M —
EBITDA	-209.00M —

DraftKings Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue