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DraftKings Inc. DKNG stock experienced downward pressure on Wednesday as competitive momentum from prediction platforms weighed on traditional sportsbooks.
On July 16, short-seller outlet The Bear Cave published a report arguing that prediction markets draw users away from traditional sportsbooks. The report noted DraftKings stock dropped roughly 40% since its initial coverage.
The Bear Cave stated, "The Bear Cave believes that Kalshi’s growth will ultimately come at the expense of DraftKings, first slowly, then rapidly." The Bear Cave labeled DraftKings’ recent performance "comparatively sluggish" and noted consumers are "voting with their fingertips" due to better product distribution on prediction platforms.
App Data Shows Shift
A July 6 Apptopia report cited by The Bear Cave showed daily active users across traditional betting platforms dropped 32% to 41% after June 15, while Kalshi and Polymarket expanded user activity. Furthermore, Dune data showed Kalshi surpassed $100 billion in cumulative volume.
On July 20, H2 Gambling Capital reported prediction markets captured 27% of U.S. sports-betting volume during the World Cup, up from 9% in January. Flutter Entertainment FLUT stock and DraftKings stock both show year-to-date declines exceeding 30%. Platforms like Rothera, backed by Robinhood Markets Inc. HOOD, also added market competition.
Several firms recently adjusted their price forecasts on DKNG stock in July. Truist Securities and Wells Fargo both maintained positive ratings while lowering their price forecast to $29 on July 20, whereas JPMorgan raised its forecast to $34 on July 15. Meanwhile, Morningstar characterized prediction markets as an opportunity rather than a threat for DraftKings and TD Cowen raised its price forecast on DKNG stock to $35.
Technical Analysis
From a trend perspective, DKNG is still in a downtrend on the longer timeframes, down 48.51% over the past 12 months and trading 18.1% below its 200-day SMA at $28.00. It’s also 10.7% below its 50-day SMA at $25.68 and 9.6% below its 20-day SMA at $25.35.
The moving-average structure is also bearish: the 20-day SMA is below the 50-day SMA, and the 50-day SMA is below the 200-day SMA (a death cross that formed in October 2025).
- Key Resistance: $27
- Key Support: $21
DKNG Stock Price Activity: DraftKings shares were down 3.29% at $23.07 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Lori Butcher via Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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This article Why Is DraftKings Stock Falling On Wednesday? originally appeared on Benzinga.com.
