CNBC Television
DraftKings CEO Jason Robins goes one-on-one with Jim Cramer
11/7/2025, 12:36:22 AM
Economic Summary
- DraftKings (DKNG) missed Q3 revenue expectations, reported a larger loss, and trimmed full-year revenue and EBITDA forecasts, citing several adverse NFL outcomes that depressed margins and hold.
- Management reports strong underlying volume: handle growth has accelerated (NFL ~13% YTD, NBA ~20%, October ~17%), and customer acquisition activity remains healthy, indicating demand resilience despite this quarter's outcomes.
- The company says roughly $400 million of outcome headwinds affected results year-to-date, emphasizing that short-term sports outcomes can swing adjusted EBITDA materially but may regress to the mean over time.
- DraftKings is expanding distribution through major media and platform partnerships (ESPN/Disney, NBCUniversal/Comcast, Amazon), which management expects to boost NBA share and broader customer reach.
- Prediction-market platforms (less regulated, taxed differently) are rising; DraftKings views them as an opportunity to participate where appropriate but argues they currently take only a small share versus full sportsbooks, with uncertain regulatory implications.
Bullish
- ESPN tie-up (Disney) should broaden reach and drive account acquisition.
- Strong handle and customer-acquisition metrics suggest durable demand and volume growth.
- NBCUniversal + ESPN partnerships could materially grow DraftKings' NBA share.
- Participation in prediction markets could create new, incremental revenue opportunities.
Bearish
- DraftKings reported a sizable Q3 revenue miss and wider-than-expected loss, and cut full-year revenue and EBITDA guidance.
- Sport outcome volatility (about $400M headwind year-to-date) creates unpredictable quarter-to-quarter earnings swings.
- Emerging prediction markets offer lower-regulation alternatives that could siphon some betting volume over time.
Bullish tickers
DKNGDISCMCSAAMZN
Bearish tickers
DKNG
DKNG
Bullish
Strong handle growth and customer acquisition, major distribution deals with ESPN (Disney) and NBCUniversal, Missouri launch and product expansion (including predictions) could drive share gains.
Bearish
Q3 revenue miss, wider loss, and lowered full-year guidance; heavy sensitivity to short-term sports outcomes (~$400M headwind YTD) creates earnings volatility and investor concern.
DIS
Bullish
ESPN's content and brand partnership with DraftKings could increase engagement and betting distribution tied to Disney's sports portfolio.
CMCSA
Bullish
NBCUniversal agreement enhances DraftKings' NBA distribution and could help win share in basketball markets.
AMZN
Bullish
Existing agreement noted as part of DraftKings' broad distribution strategy, potentially aiding customer reach.
INTU
People mentioned
Jason RobinsJim CramerJimmy PitaroAdam SilverTerry Rozier