DraftKings (DKNG) Nosedives 11.6% as New Kalshi Product Threatens Business

We recently published 11 Stocks Failing to Keep up With The Market. DraftKings Inc. (NASDAQ:DKNG) is one of the top performers on Tuesday.

DraftKings plummeted by 11.59 percent on Tuesday to end at $37.40 apiece after investors unloaded positions to mitigate risks of Kalshi’s launch of a new product that poses a threat to its business.

DraftKings Inc. (NASDAQ:DKNG) fell alongside its counterparts after Kalshi announced on Monday its new “build your own combo” parlay product that would allow users to pair multiple contracts with a game.

DraftKings (DKNG) Nosedives 11.6% as New Kalshi Product Threatens Business

Max Herman/Shutterstock.com

Adding to the sentiment was that 90 percent of Kalshi’s betting volume comes from sports contracts, and that the latter could operate in states and at ages that online sports betting applications are unable to cater to.

The product was unveiled ahead of the dual football matchups on Monday night, between the Dolphins and the Jets, and the Bengals and the Broncos.

The drop also showed that investors shunned news from DraftKings Inc. (NASDAQ:DKNG) on Monday that it entered into a multi-year advertising agreement with NBCUniversal to execute exclusive integrations and digital sponsorships across NBCUniversal’s top-tier sports properties, including premier national coverage.

Under the agreement, DraftKings Inc. (NASDAQ:DKNG) will be featured across NBCUniversal’s extensive portfolio of sports properties, spanning the NFL, PGA TOUR, Ryder Cup, Premier League, NCAA football and basketball, NBA, WNBA, and more.

The deal also includes NBCUniversal’s tentpole events, including Super Bowl LX, NBA All-Star Weekend, and the 2026 FIFA Men’s World Cup on Telemundo.

While we acknowledge the risk and potential of DKNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DKNG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.