DraftKings stock drops 37% YTD but shows 9.7% upside with a buy rating and $23.72 target.

DraftKings shares have fallen 37.26% year-to-date, nearing a 52-week low despite strong Q4 2025 earnings and positive full-year GAAP profit. The stock is considered deeply undervalued with a 24/7 Wall St. price target of $23.72, implying nearly 10% upside. Growth prospects include expansion of the DraftKings Predictions platform, continued revenue growth in sportsbook and iGaming, and supportive analyst ratings. Risks include sports outcome volatility, state tax hikes, and heavy investment impacting short-term profits. The base case expects steady growth, while a bull case projects a rise to $47.67 within 12 months if key catalysts succeed.