DraftKings Inc. (DKNG) shares surged 5% in Friday's intraday trading, despite reporting disappointing third-quarter results. The online sports betting company's stock rallied as investors focused on its ambitious plans for expansion into prediction markets.

DraftKings reported a wider-than-expected Q3 loss and revenue that fell short of analyst estimates. The company also trimmed its full-year revenue outlook. However, the market's attention was captured by CEO Jason Robins' strategic comments during the earnings call.

Robins highlighted the company's plans to launch DraftKings Predictions, a prediction market platform, in the coming months. He emphasized that prediction markets could serve as a "powerful lever" to pressure states into legalizing online sports betting. This move is seen as a potential game-changer for DraftKings' growth prospects, especially in states where traditional sports betting remains illegal.

The CEO's remarks suggest that DraftKings is positioning itself to capitalize on the growing interest in prediction markets while simultaneously pushing for broader legalization of sports betting. This dual strategy appears to have resonated with investors, overriding concerns about the company's current financial performance and driving the stock higher.