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

DraftKings Inc (NASDAQ:DKNG) shares are trading lower on Tuesday afternoon as investors process growing competitive pressures that overshadowed a major media partnership. Here’s what investors need to know.

Find out more about DKNG stock here.

What To Know: The stock’s 28% monthly slide has occurred despite DraftKings last week announcing a multi-year advertising deal with NBCUniversal for exclusive integrations across sports programming, including the NFL, NBA and the Super Bowl.

Weighing on the stock is a recent report from research firm The Bear Cave, which highlighted a long-term threat from the rise of prediction markets like Kalshi. The report argues these platforms offer better odds and more lucrative parlays, posing a structural threat to DraftKings’ core business.

One example cited a parlay on Kalshi paying out $1,043 compared to just $850 on DraftKings. This growing competition, amplified by distribution through partners like Robinhood, has sparked concerns about market share erosion, pushing shares lower despite the landmark advertising agreement.

Benzinga Edge Rankings: Reinforcing the recent negative sentiment, Benzinga Edge data shows a bearish price trend for the stock across short, medium and long-term outlooks.

DKNG Price Action: DraftKings shares were down 5.80% at $32.95 at market close on Tuesday, according to Benzinga Pro. The stock is trading near its 52-week low of $29.64.

The stock is trading significantly below its 50-day moving average of $43.98, indicating a strong downtrend. Key support is observed near the 52-week low of $29.64, while resistance is identified at the 200-day moving average of $40.26.

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How To Buy DKNG Stock

Besides going to a brokerage platform to purchase a share — or fractional share — of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For DraftKings, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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