According to CNBC, DraftKings CEO Jason Robins has repeatedly voiced enthusiasm for prediction markets, but the company’s stock has not reflected that view. After the 9th U.S. Circuit Court of Appeals ruled last month that sports-related event contracts on prediction markets were not swaps and could not be overseen by the Commodity Futures Trading Commission, DraftKings and Flutter shares rose more than 7% and more than 6%, respectively. The regulator argues all event contracts are swaps and fall under its jurisdiction. Robins said on Sept. 10 that DraftKings’ share reaction to the regulatory fight between states and the CFTC does not reflect the company’s view on prediction markets, and he repeated that message at Front Office Sports' Asset Class event last week, calling the stock move a disconnect. DraftKings launched its proprietary prediction markets exchange, DKeX, in late June. Analysts said the stock reaction is understandable because DraftKings’ main revenue driver remains its sportsbook. Joel Shulman, CEO of EntrepreneurShares, said investors are responding to DraftKings’ current business rather than the one it is moving into. DraftKings shares have fallen nearly 50% over the past year and more than 16% in the past month. Bernstein analyst Ian Moore said investors have not fully priced in the opportunities from DraftKings’ prediction exchange, including market making and access to states where sportsbooks are banned. He said DKeX ranked third for total share of prediction markets volume last week behind Polymarket and Kalshi, and estimated consumer volume for DraftKings’ predictions platform could reach $1 billion by December. Moore has an outperform rating on the stock and a $29 price target, implying 32% upside from Monday’s close.