DraftKings stock falls 6% on concerns over costly Predictions product with no revenue until 2026

DraftKings shares dropped 6% amid investor worries about the upfront costs of its new Predictions product, which is not expected to generate revenue until 2026. This decline adds to a tough year for the stock, already down 31% in 2024, despite the company posting its first full-year profit in 2025. The Predictions product aims to expand DraftKings' market by offering federally regulated event contracts but requires heavy investment before revenue materializes. While some analysts remain bullish on the long-term potential, regulatory uncertainties and increased costs pose near-term risks. Investors will be watching for clearer revenue timelines in upcoming earnings calls.