DraftKings Inc. (DKNG) shares experienced a 24-hour plunge of 14.94% in post-market trading on Thursday, following the release of its fourth-quarter financial results.

The sharp decline was primarily driven by the company's weaker-than-expected financial guidance for fiscal year 2026. DraftKings projected revenue in the range of $6.5 billion to $6.9 billion, significantly below the FactSet consensus estimate of $7.29 billion. Furthermore, the company's adjusted EBITDA guidance of $700 million to $900 million fell short of the $981 million analysts had anticipated.

Investors also expressed concern over the company's plans to make significant investments in its new DraftKings Predictions platform. Management indicated that the guidance reflects expected spending to build this prediction market business, which CEO Jason Robins described as "a massive, incremental opportunity." The market reacted negatively to the prospect of higher costs impacting near-term profitability, despite the company reporting a strong fourth quarter with revenue growth of 43% and earnings that beat estimates.