DraftKings Inc. shares rose 5.15% to $24.29 on Friday as the company reported record engagement driven by the 2026 World Cup and the launch of DKeX, a proprietary prediction markets exchange. The new exchange, integrated directly into the DraftKings: Sports & Casino app, leverages technology and a CFTC license from the acquisition of Railbird Technologies. This vertical integration allows the company to control the end-to-end customer experience and retain users within a single platform.

The World Cup has significantly boosted activity on DraftKings' platform. For the week ended June 21, the company reported $3.4 billion in annualized consumer volume and $11.3 billion in annualized total trading volume. One week into the tournament, DraftKings Predictions saw a 3x increase in first-time customers and an 87% rise in trading volume. The handle on the event was five times higher than at the same stage of the 2022 World Cup, with matches such as U.S. vs. Paraguay and Morocco vs. Brazil becoming the largest soccer events in company history for betting handle and active customers.

The expanded tournament format is contributing to the increased volume. The 2026 World Cup features 48 teams and 104 games, up from 64 games in 2022, providing more opportunities for wagering. The U.S. team has advanced to the round of 32, where they will face Bosnia and Herzegovina. A deeper run for the U.S. team could further benefit sportsbooks like DraftKings.

"DKeX provides a vertically integrated foundation for DraftKings Predictions, strengthening our prediction markets content and capabilities, giving us greater control over the technology that powers those offerings, and enabling us to move faster," said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings.

The company faces potential competition from Meta Platforms, which is reportedly developing a standalone prediction markets app called "Arena." Despite this, analysts remain bullish on DraftKings. Citizens maintained its Market Outperform rating with a $36 price forecast, while Guggenheim reiterated its Buy rating with a $35 target. Bernstein estimates the prediction and gaming sector could reach $1 trillion in annual volume by the end of the decade.

DraftKings stock was up 5.15% to $24.29 on Friday. The stock has a 52-week trading range of $20.46 to $48.78 and is down 32.3% year-to-date in 2026.

Citizens analyst Jordan Bender has maintained a Market Outperform rating for DraftKings (NASDAQ: DKNG) and raised the price target to $36 from $34. The revised valuation reflects an updated outlook on the company's shares.

Analyst Rating and Price Target

The Market Outperform rating suggests that DraftKings is expected to perform better than the broader market. The increased price target indicates the analyst's revised projection for the stock's valuation.