DraftKings Inc. (NASDAQ:DKNG) shares declined on Friday. The decline comes as Guggenheim lowered its price target on the stock and the Commodity Futures Trading Commission (CFTC) announced a major policy shift regarding prediction markets. • DraftKings stock is among today’s weakest performers. Why is DKNG stock falling?Guggenheim Reduces Price TargetGuggenheim lowered the firm’s price target on DraftKings to $42 from $45 while maintaining a Buy rating on the shares, according to Benzinga Pro.CFTC Announces ...

Group 1 - The Commodity Futures Trading Commission (CFTC) is drafting clear rules for prediction markets and withdrawing previous proposals that prohibited sports and politics-related contracts [1][2][3] - CFTC Chair Michael S. Selig emphasized the need for clear standards for event contracts, stating that the existing framework has been difficult for market participants [4] - The CFTC is also reevaluating its involvement in legal matters currently under consideration by federal courts, asserting its exclusive jurisdiction over commodity derivatives [5][6] Group 2 - The new guidelines come amid increased legal scrutiny from state authorities regarding prediction markets, with Coinbase filing lawsuits against several states to establish CFTC as the sole regulator [6][7] - Companies like Genius Sports, DraftKings, and Flutter Entertainment showed mixed stock performance following the announcement, while Coinbase and Robinhood closed lower [8]

For several high-profile growth stocks, share price performance in 2025 ended up being forgettable. These stocks didn't just underperform. They lost ground. However, if you can take a step back and look at the bigger picture, there are at least a couple of these cases where this weakness is likely only a temporary setback. Indeed, these pullbacks offer an opportunity for investors to get in front of a recovery in 2026. Where to invest $1,000 right now? Our analyst team just revealed what they believe are ...

The battle between prediction markets and sports betting companies could see changing of market share positions and/or could bring new users to the space. A sports betting expert tells Benzinga there are plenty of ways that sportsbooks can still win in the market. Sportsbooks Still Win Vs. Prediction Markets Dave Mazza is the CEO of Roundhill Investments, the company behind the Roundhill Sports Betting & iGaming ETF (NYSE:BETZ). As someone who is following sports betting companies daily, Mazza has a good ...

Core Insights - The competition between prediction markets and sports betting companies is evolving, with potential shifts in market share and user engagement [1][2] - Sportsbooks are adapting by developing prediction-style products to remain competitive in the growing market [2][3] Industry Dynamics - The sports betting industry is not being displaced by prediction markets; rather, it is evolving with sportsbooks maintaining advantages in product depth, user experience, media reach, and regulatory positioning [3] - Regulatory frameworks are crucial in determining the pace of convergence between prediction markets and traditional sportsbooks, with ongoing legal battles affecting market operations [3][5] Market Performance - Major sports betting stocks, including DraftKings and Flutter, have seen significant declines of 26% and 34% respectively over the past year, indicating market challenges [4] - The Roundhill Sports Betting & iGaming ETF (BETZ) holds substantial positions in these companies, with DraftKings and Flutter representing 8.7% and 6.4% of its assets [4] Future Outlook - The year 2026 is anticipated to be a consolidation period for the industry, focusing on profitability and potential mergers and acquisitions [5] - The legalization of sports betting in new states is progressing at a measured pace, with the treatment of prediction markets compared to traditional sportsbooks being a critical factor for future developments [5]

Polymarket has re-entered the U.S. market following regulatory approval from the Commodity Futures Trading Commission (CFTC), a move that could position prediction markets as a new engagement tool for major crypto platforms such as Coinbase, according to a report by Clear Street analyst Owen Lau. The prediction market operator which was restricted from serving U.S. customers in 2022, has returned after receiving a CFTC approval of an Amended Order of Designation. Polymarket has now launched a U.S.-based ...

Core Insights - Polymarket and Kalshi are entering the market to compete with established players FanDuel and DraftKings, aiming to capture a share of the lucrative betting business [1] Company Overview - Polymarket and Kalshi are positioned as challengers in the betting industry, focusing on prediction markets and event-based betting [1] - FanDuel and DraftKings currently dominate the market, benefiting from their established user bases and brand recognition [1] Market Dynamics - The competition between these companies is expected to intensify as Polymarket and Kalshi seek to innovate and differentiate their offerings from traditional sportsbooks [1] - The entry of new players like Polymarket and Kalshi could lead to increased options for consumers and potentially lower prices in the betting market [1]

We recently published 10 Stocks Investors Are Dumping. SharpLink Gaming Inc. (NASDAQ:SBET) was one of the worst performers on Tuesday. SharpLink fell by 9.59 percent on Tuesday to finish at $9.94 apiece, mimicking the sentiment of the broader market, as investors parked funds to mitigate risks from the ongoing trade tensions between the US and the European Union (EU). Over the weekend, President Donald Trump threatened to impose 10 percent tariffs on goods from eight countries opposing his planned takeo ...

Core Insights - Prediction markets are rapidly growing and challenging traditional sportsbooks, particularly during high-profile events like the NFL playoffs [2][4] - Online sports wagering revenue in New York has declined during the NFL playoff season, a time typically characterized by increased betting activity [2] - Platforms like Kalshi are capturing significant betting volumes, with NFL-related bets reaching a record $720 million, indicating a shift in user preference from traditional sportsbooks [3][4] Industry Impact - Prediction markets, such as Kalshi and Polymarket, are circumventing state gambling laws and attracting users nationwide, which threatens the market share of established sportsbooks like DraftKings and Flutter Entertainment [4][5] - The rise of prediction markets is particularly impactful during major sports events, as evidenced by Kalshi's five highest-volume games occurring during the NFL playoffs [5] - DraftKings and Flutter Entertainment are heavily reliant on sports betting for revenue, with DraftKings generating approximately 52% of its revenue from this segment, totaling $596 million in Q3, while Flutter's U.S. segment accounts for about 36% of its total revenue [6][7] Market Dynamics - The increasing popularity of prediction markets raises questions about the future of sports betting, as these platforms offer event-based contracts that mimic traditional betting but operate under different regulations [4] - The accessibility of prediction markets allows them to capture bets in areas where online gambling is restricted, further eroding the customer base of traditional sportsbooks [4][5] - The financial performance of DraftKings and Flutter has been negatively impacted, with their stock prices falling as prediction markets gain traction [7]

Core Insights - The article discusses the 11 best strong buy growth stocks recommended by hedge funds, highlighting insights from Cathie Wood, CEO and CIO of Ark Invest, regarding market trends and inflation outlook [1][4]. Market Trends and Inflation - Cathie Wood noted that inflation is decreasing but remains reflected in reported numbers, leading to concerns about potential market corrections due to high valuations [2]. - Historical comparisons indicate that strong markets can occur even as valuation multiples decline, suggesting a need for caution in future valuations [2]. - Wood expressed optimism about inflation trends, attributing it to falling oil and housing prices, as well as productivity gains, with unit labor costs showing a year-over-year increase of 1.2% but negative in the last reported quarter [3]. Hedge Fund Stock Selection Methodology - The article outlines the methodology used to identify the top 11 stocks, focusing on those with the highest number of hedge fund holders as of Q3 2025, sourced from Insider Monkey's database [6]. - The selection criteria included EPS diluted growth above 20% year-over-year and a strong buy consensus rating from analysts [8]. Company Highlights - **Krystal Biotech, Inc. (NASDAQ:KRYS)**: - Number of hedge fund holders: 26 - Citi raised the price target from $320 to $336, maintaining a buy rating after the company announced preliminary unaudited financial results for 2025, expecting VYJUVEK net product revenue between $106 million and $107 million for Q4 2025 and $388 million to $389 million for the full year [9][10]. - The company reported cash and investments of approximately $955 million as of December 31, 2025 [10]. - **Sportradar Group AG (NASDAQ:SRAD)**: - Number of hedge fund holders: 31 - Wells Fargo reduced the price target from $30 to $26 while maintaining an overweight rating, citing a conservative approach to future estimates [13]. - Truist Financial reiterated a buy rating with a price target of $20.35, while Citizens adjusted the price target from $36 to $34, maintaining an outperform rating [14]. - The company operates in the sports betting and entertainment sector, providing various products and services [16].