DraftKings stock plummeted after a significant revenue guidance cut, prompting a securities investigation by Levi & Korsinsky into potential misrepresentations regarding investment spending.
DraftKings cut its FY2026 revenue guidance on November 6, 2026 to $6.35-$6.55 billion, $250 million below the prior $6.7 billion midpoint, citing $650-$700 million of Predictions investment, and shares fell more than 25% by market open. The newly announced Levi & Korsinsky investigation into potentially misleading guidance adds legal overhang and headline risk, sustaining selling pressure in the coming days to weeks.
On November 6, 2026 the company lowered its full-year 2026 revenue guidance to about $6.35-$6.55 billion, below the $6.5-$6.9 billion range it had maintained on August 7, 2026, citing $650-$700 million of Predictions investment, and shares fell more than 25% by market open.
It examines whether DraftKings made materially false or misleading statements about its fiscal 2026 revenue guidance and the scale of its planned Predictions investment before the November 6, 2026 corrective disclosure. Investors who bought DKNG and suffered losses may be eligible to participate.
DraftKings shares fell over 25% after the company lowered its 2026 revenue guidance to a range of $6.35-$6.55 billion, citing $650-$700 million in new investment for its Predictions product. Law firm Levi & Korsinsky has launched an investigation into whether the company provided misleading financial statements to investors prior to this corrective disclosure.
On November 6, 2026, the company lowered its full-year 2026 revenue guidance to approximately $6.35-$6.55 billion, down from its previous range of $6.5-$6.9 billion, citing $650-$700 million in planned investments.
The investigation examines whether DraftKings made materially false or misleading statements regarding its 2026 revenue guidance and the scale of its planned investment in Predictions prior to the November 6 disclosure.