Here’s Why DraftKings (DKNG) Was Exited Amid Rising Competitive Risks

1 week ago 11

Attiya Zainib

Tue, January 27, 2026 astatine 8:54 AM CST 2 min read

ClearBridge Investments, an concern absorption company, released its “ClearBridge Mid Cap Strategy” Q4 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. During the quarter, the ClearBridge Mid Cap Strategy reported underperformance versus the Russell Midcap Index, which returned 0.16% during the period, arsenic constrictive marketplace enactment and sentiment-driven trading weighed connected results. Weakness successful accusation exertion and existent property holdings pressured returns, portion gains successful prime user discretionary stocks provided partial support. The steadfast noted that elevated dispersion and uneven net reactions continued to signifier mid-cap equity show during the quarter. Looking ahead, the portfolio absorption squad expressed cautious optimism, noting that improving clarity astir policy, involvement rates, and concern business could make a much favorable backdrop for progressive banal selection, peculiarly arsenic valuation gaps widen and fundamentals crossed galore mid-cap companies proceed to strengthen. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

DraftKings Inc. (NASDAQ:DKNG) operates a integer sports betting and online gaming platform, offering wagering, phantasy sports, and iGaming products crossed regulated markets. The one-month instrumentality of DraftKings Inc. (NASDAQ:DKNG) was -12.51% portion its shares person traded betwixt $26.23 to $53.61 implicit the past 52 weeks. On January 26, 2026, DraftKings Inc. (NASDAQ:DKNG) banal closed astatine astir $30.58 per share, with a marketplace capitalization of astir $15.15 billion.

ClearBridge Investments, an concern absorption company, stated the pursuing regarding DraftKings Inc. (NASDAQ:DKNG) successful its “ClearBridge Mid Cap Strategy” Q4 2025 capitalist letter:

"We besides exited DraftKings Inc. (NASDAQ:DKNG), a integer sports betting and gaming platform, arsenic the emergence of prediction markets introduced further competitory uncertainty that altered our condemnation successful the company’s medium-term concern model."

Here's Why DraftKings Inc. (DKNG) Was Exited Amid Rising Competitive Risks

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