DraftKings Inc. saw a notable increase in investor attention after reporting strong growth in its prediction market business for May 2026. Shares closed at $28.79 on Wednesday, June 10, up 16.2% from Monday’s close, following a series of updates on trading volumes and CEO commentary that highlighted the company’s growth prospects.

Prediction Market Growth Drives Optimism

In May, DraftKings’ annualized consumer volume on its Predictions platform increased 24% month-over-month to $1.3 billion, while the total annualized volume traded rose 34% to $3.1 billion. Despite this, the platform remains behind larger U.S. competitors, with Kalshi registering $17.9 billion in monthly volume and Polymarket reporting nearly $1.8 billion. CEO Jason Robins indicated that DraftKings’ predictions platform is approaching parity with competitors and expects it to be the market leader by the NFL season.

As reported by stocktwits, Morningstar analyst Dan Wasiolek noted that the predictions business is expected to complement, rather than cannibalize, DraftKings’ core sportsbook operations, which account for roughly two-thirds of total revenue. “We expect these advantages to drive a strong prediction market business and strengthen its competitive positioning,” Wasiolek said, rating the stock a five-star “Strong Buy” with a $45 price target, suggesting more than 63% upside from its last close.

Retail sentiment on Stocktwits turned extremely bullish, with users noting the shift from “prediction market doom to prediction market boom.” Unusual options activity also reflected growing investor interest, as traders purchased 126,727 call options on Thursday—an increase of 210% above normal volume.

Institutional investors have similarly increased exposure to DraftKings. Vanguard Group Inc. raised its holdings by 3.1%, Janus Henderson Group by 9.3%, Viking Global Investors by 27.4%, and Capital World Investors by 181.4% in the most recent reporting periods. AQR Capital Management increased its stake by 41%, bringing total institutional ownership to 37.7% of the company’s stock.

Revenue Impact and Market Position

Robins addressed concerns about revenue cannibalization, stating that while professional and institutional bettors may be shifting some activity to prediction markets, this handle is typically low- or negative-margin and does not materially impact overall revenue. DraftKings continues to improve net win margins through increased hold and more efficient promotional strategies.

The company’s performance is supported by a robust presence in U.S. states where sports betting is legal, covering 52% of the population and expected to expand to 95%. Analysts believe the Predictions platform could generate $100 million in annualized revenue starting this year, further enhancing DraftKings’ growth prospects in a projected $60 billion North American market for sports betting, iGaming, and prediction markets by 2030.

The Supreme Court is expected to provide clarity on prediction market regulations by late 2027 or early 2028, which may influence the expansion of legalized sports betting in holdout states. Robins emphasized the importance of protecting casual users while supporting institutional activity in the prediction market ecosystem.

Analysts at Jefferies, Morningstar, and UBS have expressed increased confidence in DraftKings’ positioning and long-term growth potential. With the upcoming FIFA World Cup expected to drive engagement, DraftKings’ integrated platform for daily fantasy sports, sports betting, and online casino offerings positions it to benefit from continued demand across multiple digital gaming segments.