What to Know Before Buying DraftKings Stock

Pay close enough attention to political and sports news these days and it's hard to avoid mentions of prediction markets. Operators of next-generation derivatives exchanges have become so mainstream that Kalshi -- one of the biggest companies in the space -- was the subject of an almost seven-minute-long interview on CBS Sunday Morning on Nov. 16.

Companies such as Kalshi, Polymarket, and their peers offer event contracts on everything from award shows to cryptocurrency prices to elections to what outfits Taylor Swift will wear, but where these companies have cast chills down the spines of public market investors is sports betting. Those fears are reflected by (NASDAQ: DKNG) -- a stock that's off 15.48% over the past month and that closed 46.24% below its 52-week high on Monday.

DraftKings stock is under siege and prediction markets aren't entirely to blame. Image source: Getty Images.

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Source Fool.com