DraftKings (DKNG) Plunges 1.77% as Technical Bearishness and 16.22% Surge in Short Interest Deepen Five-Day Slide

The share price of DraftKings (DKNG) fell 1.77% on Thursday, marking its fifth consecutive day of declines, with the stock dropping 3.46% over the past five trading sessions. Prices reached a new intraday low, the lowest since September 2025, with a 2.83% drop during the session. This downward trend reflects a confluence of bearish technical signals and broader market pressures.

A critical technical development on September 5, 2025, saw the MACD and KDJ indicators trigger a "Death Cross" on the 15-minute chart—a widely recognized bearish reversal pattern. This event intensified selling pressure, as traders interpreted it as a shift in momentum toward further declines. The technical deterioration aligns with rising short interest, which increased by 16.22% month-over-month, with 7.71% of the float currently shorted. Such activity suggests growing investor skepticism about near-term recovery prospects.

Despite the technical headwinds, DraftKings secured a direct mobile sports betting license in Missouri, a strategic win that could enhance long-term growth. The company will launch its online platform in December 2025, bypassing traditional partnerships that previously restricted expansion in the state. This regulatory progress contrasts with the sector’s broader struggles, as sports betting operators face declining revenues and regulatory hurdles. However, the market reaction to this news appears muted amid persistent technical weakness.

Analyst sentiment remains cautiously optimistic, with a "Moderate Buy" consensus rating supported by 25 "Buy" and 2 "Hold" ratings. Earnings projections for the coming year suggest a 139% growth in EPS, though DraftKings’ negative P/E ratio (-73.75) highlights its unprofitable status. The PEG ratio of 1.11 indicates valuation concerns, as investors weigh high-growth potential against current financial performance. Meanwhile, insider selling of $32.34 million over three months raises questions about confidence in near-term execution.

Market attention has increased, with search interest for DKNG rising 47% in 30 days and a 110% surge in watchlist additions. Yet, news sentiment remains neutral, averaging 1.13 on a -2 to 2 scale—slightly positive but below the sector average. This suggests that while the stock is under scrutiny, it lacks the momentum to reverse its downward trajectory. The interplay of technical bearishness, regulatory optimism, and sector-wide challenges positions DraftKings in a transitional phase, balancing short-term risks with long-term expansion opportunities.