DKNG Sentiment Craters as Traders Wonder Out Lout "Is Draftkings Dead?"

"Shares of DraftKings ( NASDAQ:DKNG) are down 4.9% year to date at $34.50, and retail traders are openly questioning whether the company's business model has a future. Despite climbing 23.6% over the past month, sentiment on Reddit and X has cratered to bearish levels, with a sentiment score of 22 as of Thursday morning. The shift stems from a viral post titled "Is DraftKings Dead?" that's drawing comparisons between DraftKings and the taxi industry before Uber arrived."

"argues that prediction markets like Polymarket and Kalshi could make traditional sportsbooks obsolete. The author writes: "The moment fully legal U.S. prediction markets go live with lower fees, tighter spreads, market-driven odds, and instant settlement the traditional sportsbook model gets exposed for what it is: a high vig, low innovation cash cow." The concern is that DraftKings "can't match decentralized liquidity, can't update odds as efficiently as markets" and that "bettors don't stay loyal to brands they stay loyal to better odds and better payouts.""

Shares of DraftKings have fallen 4.9% year-to-date to $34.50 despite a recent one-month gain. Retail sentiment on platforms like Reddit and X has turned sharply bearish, driven by a viral post questioning the long-term viability of the sportsbook model. Prediction markets such as Polymarket and Kalshi are cited as lower-fee, market-driven threats that could undercut traditional sportsbooks. DraftKings reported a $256.8M net loss in Q3 2025 on $1.14B revenue and negative operating margins of -23.8%. Marketing costs remain high at $1.09B in Q3, and analysts have cut price targets citing rising competitive threats.

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