DraftKings (DKNG) Stock Is Trading Lower Tuesday: What's Driving The Action?

Benzinga

DraftKings shares fell nearly 6% amid rising competition from prediction markets like Kalshi, despite a new NBCUniversal media deal. Analysts warn the company’s weaker payouts and market share erosion could pressure its already sliding stock.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02DraftKings shares fell 5.8% to $32.95 on Tuesday as investor concerns over a rise in competition

00:08overshadowed a major media partnership with NBCUniversal and according to Benzinga.

00:13Stock has declined 28% of the past month, even after announcing exclusive ad integrations

00:17across NFL, NBA, and Super Bowl broadcasts.

00:21Research firm The Bear Cave warned of growing threats from prediction markets like Calci,

00:25which offer higher payouts and better odds, posing structural risks to DraftKings' core business.

00:30A report noted a parlay on Calci paying $1,043 compared to $850 on DraftKings,

00:36sparking fears of market share erosion.

00:38Shares now trade near a 52-week low of $29.64, below key resistance at a 200-day moving average

00:45of $40.26.

00:47For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended