DraftKings Stock Near 2-Year Lows Ahead of Earnings

DraftKings Inc (NASDAQ:DKNG) is gearing up for its fourth-quarter report, due out after the close tomorrow, Feb. 12. Per Zacks Research, the sports betting company is expected to share earnings of 50 cents per share on revenue of $1.99 billion, both of which would be an increase from the same quarter a year ago. 

Looking back, DKNG has finished five of its last eight post-earnings sessions higher, including an 8.6% pop in November. The shares have averaged a 5.3% post-earnings move, regardless of direction, while the options pits are pricing in a much higher 15.9% swing this time around. 

Though sports betting has been on the rise (to say the least), DraftKings stock has failed to capitalize due to a number of factors, including increased competition. The shares just hit a Feb. 5 two-year low of $25.01, and were last seen down 3.1% at $26.28. Before the latest pullback, DKNG had trouble breaking above above pressure at the $37.50 level. Since the start of 2026, the equity has already shed 23.8%.

In the event of a positive post-earnings move, short covering could provide tailwinds. Short interest represents 7.8% of the stock's available float, or nearly three days' worth of pent-up buying power.  It's also worth noting that after the latest downturn, DKNG's 14-day relative strength index (RSI) of 27.7 sits in "oversold" territory.