Short-seller research outlet The Bear Cave published its latest report on DraftKings Inc. (NASDAQ:DKNG) Thursday, arguing that prediction markets are pulling users away from traditional sportsbooks and that the risk is not priced into the stock.
DraftKings stock is showing downward pressure. What’s ahead for DKNG stock?
The Bear Cave Bites Down on DraftKings
The Bear Cave, which is now owned by Hunterbrook Media, noted that DraftKings shares have fallen roughly 40% since its first report on the company, and that the bear case is even stronger now, citing the competitive threat of prediction markets.
“The Bear Cave believes that Kalshi’s growth will ultimately come at the expense of DraftKings, first slowly, then rapidly,” the report states.
