Dear Reader,

I believe Elon Musk is about to launch a new device that could kill the iPhone.

It's rumored to be thinner... have longer battery life... and sell for much cheaper...

It could also be usable worldwide without cell towers... and run on one of the most powerful AI-based platforms in existence.

I call it "Starphone" (see why here)...

And I'm convinced this new device could quickly unlock some of the biggest Elon gains you've ever seen.

This marks the third major mobile phone prediction of my career...

In 2004, I told Congress the smartphone was about to transform the world – years before the iPhone was first announced.

Had you bought $1,500 worth of Apple shares back then, they'd now be worth million.

A few years later, as a hedge fund trader, I told Steve Cohen at SAC Capital that Apple wouldn't sell 1.2 million phones like every other analyst was predicting... but 1 billion phones.

Both predictions came true.

Now, I'm sharing all the evidence proving why I believe Elon is working on a new device...

One that could not only change your life and our society... but potentially make you 50 times your money as it hits shelves.

Just know that this story is already starting to hit the mainstream.

Just last week, the FCC gave Elon a major green light to move ahead with his mobile plans.

That means your window to move your money is NOW — before the official debut.

Get the full story and see all the government filings and deals here.

Regards,

Josh Baylin
Frmr. Bloomberg Reporter
Frmr. SAC Capital
Senior Tech Expert, Stansberry Research

P.S. I'm also sharing the name and ticker of a stock at the very heart of this huge story. It's 100% free, on this page here.

DraftKings Stacks the Deck: The $800M Prediction Pivot

Author: Jeffrey Neal Johnson. Posted: 10/7/2026.

DraftKings Inc. (NASDAQ: DKNG) is moving to capture a share of the prediction market sector through its newly launched, CFTC-regulated DKeX exchange.

As its primary rival, Kalshi, faces state-level litigation, DraftKings' pivot could help address the seasonality that has historically affected its earnings. The transition opens a high-margin revenue vertical valued at approximately $800 million, and investors are accumulating the company's stock as it trades near its 52-week low.

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The legacy sportsbook model is facing headwinds. Recent data shows an approximately 4.6% year-over-year revenue contraction to around $1.44 billion, signaling that the core betting business needs a catalyst.

Sports betting relies heavily on seasonal events such as the NFL schedule, leaving revenue gaps during the summer months. By pivoting to event-driven contracts, DraftKings is creating a year-round engagement engine. Investors evaluating DKNG's current price of around $19 are weighing near-term margin compression against the long-term cash flow potential of a regulated exchange.

Raising the Stakes: DKeX and the $800 Million Opportunity

Bank of America recently upgraded DraftKings from Neutral to Buy and maintained a $27 price target. This improved outlook stems from the risk-reward profile created by the prediction market rollout. Bank of America's financial modeling indicates that the proprietary DKeX exchange could generate an estimated $600 million to $800 million in revenue by 2027. This includes roughly $400 million in direct transaction fees and up to $400 million from internal market-making operations.

Understanding the economics requires examining the underlying infrastructure. DraftKings launched DKeX in June 2026, powered by its previous acquisition of Railbird Technologies. Owning the exchange software reduces external vendor costs and allows DraftKings to capture the full margin on transactions. Instead of merely taking a small cut of a traditional sports wager, DraftKings now also operates an event-contract exchange.

Event contracts function like binary options, allowing users to buy a "yes" or "no" share on a specific outcome. Because the exchange simply matches buyers and sellers, it takes no directional risk. DraftKings collects a transaction fee on every trade. Combined with internal market-making operations that provide liquidity, the platform captures margin from both the spread and the transaction fee.

Sanford C. Bernstein estimates that DKeX will reach approximately $1 billion in consumer trading volume by December 2026. This projection provides a near-term metric for tracking the pivot's success against the recent decline in sportsbook revenue. The prediction market model enables year-round event trading, smoothing the volatile seasonal revenue patterns associated with traditional sports betting.

Boxing Out the Competition

The competitive landscape presents immediate challenges for DraftKings. Fanatics is reportedly deploying an estimated $1 billion marketing budget for its betting operations. This increase in advertising spending is driving up customer acquisition costs across the sector and threatening traditional sportsbooks. DraftKings is using prediction markets as an alternative, lower-cost acquisition channel.

Political events, economic data releases and pop-culture outcomes attract a different demographic from traditional sports bettors. By cross-selling these new users into its core casino and sportsbook applications, DraftKings can lower its overall blended customer acquisition cost and improve total user lifetime value. This could create a more sustainable growth trajectory without forcing the company into a costly advertising war.

Private competitor Kalshi is reportedly seeking a $40 billion valuation and captured early NFL Week One prediction market share. However, Kalshi faces significant regulatory friction on its path to the public markets. The private exchange is currently embroiled in litigation with multiple state attorneys general, including a recent high-profile lawsuit from New York.

This legal battle creates a potential structural advantage for DraftKings. The company already operates within an established state-by-state compliance framework and holds the necessary Commodity Futures Trading Commission approvals. While Kalshi dedicates capital to appellate courts and state regulators, DraftKings can direct its cash toward user acquisition and platform liquidity. Regulatory compliance serves as a distinct operational moat, allowing DraftKings to capture retail market share in the prediction market vertical without fighting the same legal battles.

Hedging the Bet: DraftKings' Balance Sheet

Internal and external conviction are currently diverging, creating an interesting setup for value-oriented investors. Company insiders, including Director Jocelyn Moore, who liquidated roughly 10,700 shares in August 2026, have reduced their positions during the recent downturn. Executive sales often signal near-term caution, but institutional sentiment provides a clear counterweight.

Entities such as QRG Capital Management and NewEdge Advisors accumulated shares during the second quarter, treating the decline toward the 52-week low of $18.52 as a strategic entry point. DraftKings' stock currently trades around $19, with a market capitalization of approximately $9.7 billion. Sell-side analysts maintain a Moderate Buy consensus, supported by an average 12-month price target of $34.04.

The fundamentals reveal a business in transition as it navigates a complex macroeconomic environment. DraftKings carries a forward price-to-earnings ratio of about 48 and a debt-to-equity ratio of 3.22. In a higher-interest-rate environment, carrying $3.22 in debt for every dollar of equity restricts financial flexibility. This leverage limits the company's ability to sustain a prolonged capital war against well-funded private rivals. Servicing this debt requires consistent cash flow, making DKeX's success vital to the company's future growth.

DraftKings recently beat earnings expectations, posting earnings per share of 9 cents versus a consensus estimate of 2 cents. This profitability pivot shows that the company can optimize operations and reduce unnecessary overhead while funding the DKeX expansion. With a beta of around 1.6, the stock is more volatile than the broader market. The stock is down about 44% year to date, reflecting market skepticism about the top-line contraction. However, recent institutional accumulation suggests professional money managers are focusing on 2027 cash flow projections rather than trailing 30-day performance.

The Final Hand: Evaluating the Event Exchange Pivot

DraftKings is fundamentally altering its core business model. The shift from a seasonal sports-beta play to a holistic, real-time event exchange provides a clear path to high-margin revenue generation. Monetizing election cycles and geopolitical events reduces reliance on the traditional sports calendar and creates a stickier, more engaged user base.

This transition will require careful execution. The heavy debt load and recent contraction in core sportsbook revenue mean the DKeX platform must perform as management projects. The projected $800 million revenue opportunity offers a compelling offset to rising customer acquisition costs, provided DraftKings maintains its regulatory advantage over private challengers. Investors evaluating consumer discretionary stocks may want to monitor DraftKings' monthly DKeX trading volumes heading into the winter months. These figures could help gauge the success of the company's high-margin pivot before investors take a position.

MarketBeat Week in Review – 09/21 - 09/25

Reported by MarketBeat Staff. Article Published: 9/26/2026.

Stocks had another volatile week, with oil, bond yields and concerns about artificial intelligence (AI) dominating the headlines. Oil prices are moving lower, but investors should expect a higher floor as demand for oil and natural gas remains insatiable. A 10-year Treasury yield above 5% adds another headwind for stocks.

The next round of earnings won't kick off until mid-October. Until then, stocks are likely to move on headlines rather than fundamentals. But earnings remain the story, and they're expected to stay strong for the quarter that's ending. Many analysts believe that could spark a rally into year-end, regardless of what happens with interest rates.

Terrifying Forecast: Could Your Funds be Seized? (Ad)

During the 2008 financial crisis, 485 US banks failed. Martin D. Weiss called 484 of them, a 99.8% accuracy rate.

Now Weiss says the banking system faces a new kind of stress, one that could touch nearly every bank in America, large or small.

See Weiss's full banking warning now and learn how to prepare.

Next week, investors will get the latest reading on inflation with the Personal Consumption Expenditures (PCE) index on Sept. 30. That will be followed by the September jobs report on Oct. 2. Both could be market-moving events.

Articles by Thomas Hughes

Thomas Hughes explained that the bull case for Bloom Energy (NYSE: BE) is simple. Energy is a bottleneck for the AI buildout, and Bloom can help unclog that bottleneck. In addition to its speed of deployment, Hughes highlighted several other reasons why Bloom's technology could support a higher stock price.

NVIDIA (NASDAQ: NVDA) chief executive officer (CEO) Jensen Huang recently announced that cybersecurity would be the next area of growth in the AI trade. Hughes pointed investors to three stocks that sit at the center of NVIDIA's cybersecurity push.

Is it time to snack on General Mills (NYSE: GIS)? The stock is down more than 25% in 2026 and delivered an uninspiring earnings report. However, Hughes explained why the company is nearing an inflection point that could make it appealing to yield-focused investors.

Articles by Sam Quirke

The Tesla Inc. (NASDAQ: TSLA) monthly delivery report used to be a significant moment for investors. However, Sam Quirke wrote that investors shrugged off this month's report. That's further evidence that institutions view Tesla as more than a car company.

Quirke also wrote about the AI power bottleneck. Amazon (NASDAQ: AMZN) is partnering with Generac Holdings (NYSE: GNRC) to secure backup generators for its expanding network of AI data centers. The deal adds to the company's capital expenditures, but power is now a must-have expense for hyperscalers.

Marvell Technology (NASDAQ: MRVL) has rebounded after a summer slump. Quirke explained why the stock is surging and whether it can keep up in the custom AI chip race.

Articles by Chris Markoch

Viking Therapeutics (NASDAQ: VKTX) may be shifting the GLP-1 conversation toward dosing rates rather than absolute weight loss. Chris Markoch explained what investors should understand about what this means for the sector and the risks that still exist for VKTX.

Markoch also looked at four stocks with high short interest and analyzed whether bearish sentiment toward each stock is warranted or misplaced.

Palantir Technologies (NASDAQ: PLTR) has been in a steady uptrend since its Q2 earnings. This week, Markoch highlighted two recent analyst upgrades and how they contrast with Michael Burry's bearish call.

Articles by Ryan Hasson

Higher interest rates and fears of a contracting AI trade have made dividend stocks appealing. This week, Ryan Hasson offered investors five dividend stocks that combine income and share-price growth with bullish analyst sentiment.

Stocks, particularly technology stocks, were expected to move sharply lower after the Federal Reserve raised interest rates. For the most part, the opposite has happened, and Hasson highlighted three technology stocks that could have more upside if the rally has legs.

In a tale of two defense-sector stocks, investors had a muted reaction to the news that Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT) secured nearly $1.9 billion in defense awards from the Pentagon. Hasson explained why the market may only have one story right.

Articles by Leo Miller

Three words can help investors navigate the AI headlines: follow the money. This week, Miller did just that by reminding investors that Broadcom (NASDAQ: AVGO) CEO Hock Tan doubled down on his bullish call for approximately $350 billion in AI sales despite calls for a slowdown in AI frontier development.

The call for AI regulation has put an end to lingering concerns about a SaaS-pocalypse. Miller explained why that translates into bullish news for three software stocks that have already been on the rebound.

Meta Platforms (NASDAQ: META) is up more than 30% in the last 30 days, and the stock received more bullish news this week. Miller highlighted that Meta One subscriptions are growing, due in large part to the launch of the company's personal AI agent, Muse.

Articles by Nathan Reiff

At a time when consumers are increasingly sensitive to how they spend their money and which companies they support, customer-engagement software is having a moment. This month, Braze Inc. (NASDAQ: BRZE) beat expectations. Nathan Reiff highlighted two other SaaS companies for investors to watch.

IonQ Inc. (NYSE: IONQ) has been one of the early winners in the quantum-computing sector. The company recently secured another big win. However, Reiff pointed out that while the headlines suggest future commercial success, the reality of future revenue will still take time.

Reiff also pointed investors to three stocks delivering market-beating growth not driven by AI. However, Reiff noted that each company has catalysts suggesting that growth can continue.

Articles by Dan Schmidt

Dan Schmidt highlighted that recent headlines have convinced some investors to take profits in their AI stocks. But headlines and future reality are different, and Schmidt highlighted three AI stocks with attractive valuations, backed by strong demand and even stronger outlooks.

Sandisk Corp. (NASDAQ: SNDK) joined the S&P 100 this week. However, Schmidt explained that now that index-tracking funds are required to own SNDK, investors will need to be more discerning about what's driving any growth in the stock.

Recent data from the National Restaurant Association suggests consumers are still dining out. Schmidt explained why that news can't come at a better time for three restaurant stocks that are near 52-week lows due to growing pressure on their core consumers.

Articles by Jeffrey Neal Johnson

The story of Qualcomm Inc. (NASDAQ: QCOM) in 2026 is the company's pivot into agentic AI, which will allow it to move beyond cyclical smartphone upgrade cycles. This week, Jeffrey Neal Johnson highlighted the company's progress and why analysts are still taking a wait-and-see approach that may present an opportunity for patient investors.

Meta's rollout of Muse has created an unexpected winner in the AI trade. Johnson explained why Arm Holdings (NASDAQ: ARM) is surging as investors focus their attention on the CPU demands of agentic AI.

Oura Inc. (NASDAQ: OURA) expects to begin publicly trading the week of Sept. 28. Johnson explained why the company's engagement metrics and institutional support from players like Eli Lilly (NYSE: LLY) may help support Oura's premium valuation.

Articles by Peter Frank

The rebuilding of Tapestry (NYSE: TPR) is complete, and Coach is driving that growth. However, valuation concerns are keeping some investors on the sidelines. Peter Frank wrote about the opportunity that exists if the company can avoid execution risks.

In a year when small-cap stocks stand out, Dave Inc. (NASDAQ: DAVE) is having a moment. The company behind the cash-advance app is displaying impressive growth. Frank pointed to analyst support that could drive the stock higher.

Energy Transfer (NYSE: ET) is snatching victory from the jaws of defeat. Frank explained why, nearly a year after abandoning what was supposed to be a signature natural gas export terminal, the company's focus on its pipeline backlog is paying off for investors.