DKNG Sentiment Craters as Traders Wonder Out Loud “Is Draftkings Dead?”

Core Viewpoint - DraftKings faces significant challenges as its business model is being questioned, particularly in light of emerging competition from prediction markets, leading to a bearish sentiment among retail traders [1][2]. Company Performance - DraftKings shares are down 4.9% year to date, currently priced at $34.50, despite a recent 23.6% increase over the past month [1]. - The company reported a net loss of $256.8 million in Q3 2025, with revenues of $1.14 billion, resulting in negative operating margins of -23.8% [3]. - Marketing expenses remain high at $1.09 billion in Q3, although customer acquisition efficiency improved by 20% year over year [4]. Competitive Landscape - Analysts have reduced DraftKings' price targets by 18% to 22% due to increasing competition from prediction markets like Polymarket and Kalshi, which offer lower fees and decentralized infrastructure [5]. - The bearish sentiment is fueled by concerns that DraftKings cannot compete with the liquidity and efficiency of decentralized prediction markets, which may render traditional sportsbooks obsolete [2][3]. Market Sentiment - Sentiment on platforms like Reddit and X has turned bearish, with a sentiment score of 22, following a viral post questioning DraftKings' viability [1]. - The post has gained traction with over 600 upvotes, drawing comparisons between DraftKings and the taxi industry before the advent of Uber [2].