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Why DraftKings Plunged Today
['Billy Duberstein']
The Motley Fool
Shares of sports betting and iGaming giant DraftKings (DKNG -11.59%) fell 10.2% on Tuesday as of 12:32 p.m.
DraftKings didn't have any company-specific news today, but was rather affected by the success of an up-and-coming privately owned competitor.
Surging sports betting volumes on Kalshi could be a competitive threat to DraftKings and its public competitors, which were also in the red today.
In addition to the positive Kalshi data, today also saw a worse-than-expected September consumer sentiment reading from The Conference Board.
DraftKings and consumer stocks under pressureDraftKings currently trades at 28 times this year's earnings expectations and 18.6 times 2026 earnings estimates.