The share price of Sports entertainment and gaming company DraftKings (NASDAQ:DKNG) has declined 3.9% since Hindenburg Research revealed its short position in the stock on June 15. So, can the stock gain based on Redditors’ interest in it and on its numerous strategic alliances? Let’s discuss and find out.With the increasing legalization of gambling, digital sports entertainment and gaming company DraftKings Inc.’s (DKNG) shares have gained 16.7% over the past year to close yesterday’s trading session at $49. The company has several strategic collaborations with the likes of the National Football League and World Wrestling (NYSE:WWE) Entertainment, Inc. (WWE). It also acquired Blue Ribbon Software Ltd. in April 2021 and Vegas Sports Information Network, Inc. in March 2021.
However, the stock has lost 31.9% over the past three months on concerns over investigations against DKNG for potential security violations.
Also, DKNG continues to face intense competition from several companies in the gambling space, such as Boyd Gaming Corporation (NYSE:BYD), International Game Technology PLC (NYSE:IGT), and Penn National Gaming, Inc. (NASDAQ:PENN) whose near-term prospects look better. Furthermore, DKNG is not yet profitable. So, DKNG’s near-term prospects look bleak.