DraftKings (NASDAQ: DKNG) Shares Plunge 20.42% in Eight-Day Slide Amid Sports Betting Rivalry, PR Fumbles

DraftKings Inc. (NASDAQ: DKNG) shares fell to their lowest level since June 2025 on October 2, 2025, with an intraday decline of 1.02%. The stock has now fallen for eight consecutive trading days, eroding 20.42% of its value over the period, marking a sharp correction amid heightened market volatility and shifting investor sentiment.

The recent selloff coincided with unusual options trading activity in late September, as reported by multiple platforms, which amplified short-term price swings. Institutional investors also exhibited mixed signals: while ARK Investment Management maintained a significant stake, others like Westside Investment Management reduced their holdings, reflecting divergent views on the company’s growth trajectory. Insider sales further fueled concerns about management confidence, though long-term institutional support remained evident.

Competitive pressures in the U.S. sports betting sector added to the downward momentum. Kalshi’s expansion into real-time betting highlighted DraftKings’ vulnerability to market share erosion, while stagnant user growth and margin compression raised questions about sustainability. Compounding these challenges, a controversial 9/11-themed promotion in late September sparked public backlash, damaging brand reputation and investor trust despite swift apologies from the company.

Broader macroeconomic factors, including weak consumer sentiment and sector-wide headwinds, further pressured the stock. While strategic partnerships like the NBCUniversal deal offered some optimism, the cumulative impact of competitive threats, PR risks, and institutional uncertainty underscored the stock’s sensitivity to near-term catalysts. Investors now face a balancing act between DraftKings’ long-term potential in the gaming sector and its immediate operational and reputational hurdles.