The 10 Second Takeaway: DraftKings and other online sports betting platforms are losing market share to predictive markets.
 

DraftKings (Nasdaq: DKNG) and FanDuel (owned by Flutter Entertainment (NYSE: FLUT)) have enjoyed more than 80% share for years in America's online sports betting market duopoly.
But now they're adjusting to a new player who's recently joined their table.
Privately-held Kalshi has a reserved seat to allow gamblers to bet on sporting events. Yet this isn't the same as its larger peers, and its new approach is taking the industry by storm.
Kalshi isn't just another online sports book. It is technically an exchange who sells financial products that are tied to the outcomes of sporting events.
That legal distinction is important, because Kalshi and other predictive market platforms are regulated by the Commodity Futures Trading Commission at the federal level. That's quite different from online sports betting platforms, who are regulated by each individual state.
DraftKings and FanDuel have been lobbying endlessly on a state-by-state basis, trying not only to get their apps legalized but also for them to have consistent tax rates. Even after decades of operations, online sports betting is still only legal in 38 states + the District of Columbia.
Yet Kalshi's financial products are available in all 50 states and have quickly sidestepped the traditional book of rules.
As expected, the money is flowing to what's more universally available. The NY Times reported that Kalshi facilitated more than $2.5 billion worth of sports contracts in September alone, with the majority being on NFL games.
That's a pretty formidable number, especially when considering the total cash handle for all sports betting last year was around $150 billion.
There are political ties here as well. Kalshi named Donald Trump Jr as a strategic advisor one week before the president's inauguration, and the Trump Administration further issued tax cuts that are financially advantageous for future contracts as compared to traditional gambling.
I don't personally see much of a difference between prediction market financial contracts and online sports bets. They're pretty much identical in function and are placed in exactly the same way within the apps by users.
Yet in this highly-regulated industry, Kalshi and its predictven market peers appear to have been given a Trump Card. And that's providing an important edge that is causing it to win big at the expense of others.
DraftKings will report its third quarter earnings in early November. I'll grab a front row seat and some popcorn, eager to see how this game will ultimately play out. 

See all of our coverage on DraftKings at 7investing.com/DKNG

Is Quantum Computing Investable?In a @7investing exclusive interview, I recently spoke with @TiernanRayTech about the status quo of quantum computing.Tiernan has had a front row seat for technology innovation for decades. Quantum is making headlines once again, and he shared insights on what's really going on behind the scenes.Publicly-traded companies like $IONQ Rigetti $RGTI, and D-Wave $QBTS have been making significant commercial progress, often growing their top-line sales at triple-digit rates.But those companies are also priced at an average of 260x forward sales -- which are nosebleed multiples that are putting the "AI bubble" to shame!So is quantum technology ready for the main stage yet? Why would you use it steady of classic computing? And are there any companies here actually worth investing in?Tiernan and I reviewed the challenges quantum faces, the tech roadmaps being pursued, the applications where it makes the most sense, and why quantum could actually be really good for $NVIDIA.We also discussed how investors should approach this space and the potential role of future acquisitions.Thank you Tiernan for sharing your insights with 7investing!https://7investing.com/article/are-we-still-five-more-years-from-quantum-computing-with-special-guest-tiernan-ray/

Lemonade (NYSE: LMND) is a new player who's really adding zest to the insurance industry. Its AI-powered underwriting enables it to write new policies much more efficiently than its less-tech-savvy traditional competitors.And in addition to its agent-related costs being a fraction of others, its unique Synthetic Agents marketing approach is providing a very lucrative LTV/CAC of 3X (which is very good).In this 7investing exclusive livestream event, I shared a formal presentation that included insights about Lemonade's fundamental results, key metrics, competitive differentiation, current valuation, and technical trading factors that might make this stock particularly intriguing.It was also an interactive event, with a real-time chat and questions in the Q&A. I enjoyed this refreshing event, where we found out whether Lemonade is worth the squeeze as an investment.

Thank you to all who attended live!

The digital advertising industry is, in many ways, a bellwether of the American economy. It's a direct look at how and where companies are acquiring new customers, as well as how things are going in the business world.

PubMatic (Nasdaq: PUBM) is one of the digital advertising industry's earliest trailblazers. Founded in 2006, its mission has always been to provide a platform for PUBlishers to autoMATICally monetize their websites, podcasts, and streaming TV channels with programmatic ads. In the future, that might expand to new formats like VR headsets or even self-driving cars.

7investing recently sat down with PubMatic founder & CEO Rajeev Goel to discuss how he sees the digital ad industry evolving.

Here's a look at the topics we discussed:

1) Industry overview (0:00): Where does digital advertising stand in 2025?

2) Competitive advantage (4:45): What are PubMatic's structural sources of competitive advantage, especially compared to your peers?

3) The Next Big Thing (13:32) : Header bidding for CTV in 2020, then Connect in 2022, then Activate in 2023. What's your next major growth format?

4) Connected TV (18:26) : Streaming ads seem more interactive now. How is CTV evolving?

5) Supply Path Optimization (22:32) : SPO is still 55% of total activity yet DBRR fell during Q1. Have the large publishers now fully consolidated their inventory?

6) The Trade Desk (26:02): The Trade Desk continues to promote OpenPath and says it will disrupt the industry. How do you believe OpenPath will most likely impact PubMatic?

7) The Macro (33:24): Several forecasts are reducing expectations for ad budgets in 2025. What are you seeing on the near-term horizon?

8) Capital Allocation (37:46): Just announced a $100m buyback expansion. How are you prioritizing capital allocation to maximize shareholder value?

Are you ready to begin investing in your future? Join 7investing today at 7investing.com/subscribe and get your first 7 days absolutely free!

Today's 7investing podcast is all about Rocket Lab!

The space economy is hitting an inflection point. And that will be good news for its earliest investors.

Eastern European conflicts, standoffs between China and Taiwan, and new commercial interests are creating a trillion-dollar industry in Earth’s orbit.

And this is much more than just glorified media hype. An unprecedented number of applications is forcing the FCC to streamline its review process, as the number of active satellites is growing incredibly quickly.

Rocket Lab (NASDAQ: RKLB) is in the perfect position to benefit. This small-cap, small-launch provider’s revenues will skyrocket during the next decade, while also dramatically reducing its costs due to the reusability of its rockets.

Its rocket scientist CEO Peter Beck is a New Zealand gem, not afraid to get his hands dirty and don the hard hat to build bigger rockets and serve more demanding customers. Credibility and long-term relationships are vitally important in the launch industry. Rocket Lab is gaining both…at an accelerating pace.

The Solar System is the limit for this disruptor. Rocket Lab is a very high risk investment who faces a myriad of challenges, but is also growing quickly in a massive and mostly unexplored new market. It’s time to place another bet on the Final Frontier.

Today's 7investing podcast is all about Rocket Lab!

The space economy is hitting an inflection point. And that will be good news for its earliest investors.

Eastern European conflicts, standoffs between China and Taiwan, and new commercial interests are creating a trillion-dollar industry in Earth’s orbit. And this is much more than just glorified media hype. An unprecedented number of applications is forcing the FCC to streamline its review process, as the number of active satellites is growing incredibly quickly.

Rocket Lab (NASDAQ: RKLB) is in the perfect position to benefit. This small-cap, small-launch provider’s revenues will skyrocket during the next decade, while also dramatically reducing its costs due to the reusability of its rockets.

Its rocket scientist CEO Peter Beck is a New Zealand gem, not afraid to get his hands dirty and don the hard hat to build bigger rockets and serve more demanding customers. Credibility and long-term relationships are vitally important in the launch industry. Rocket Lab is gaining both…at an accelerating pace.

The Solar System is the limit for this disruptor. Rocket Lab is a very high risk investment who faces a myriad of challenges, but is also growing quickly in a massive and mostly unexplored new market. It’s time to place another bet on the Final Frontier.

Three Catalysts that Could Send Crocs' Stock SoaringOriginally recorded: May 9, 2025Some great investment opportunities are sexy tech companies that are growing quickly and everyone is familiar with. But others can be boring shoe companies, who are growing slowly and yet are ridiculously profitable.Crocs (Nasdaq: CROX) is an example of the latter. Stuck between the uncertainties of a recession, slowing consumer spending, and a trade war, CROX is now selling for just 7x its trailing earnings. That's very cheap; a clear sign the market is putting these shares on the bargain rack.But Simon has found three hidden catalysts that he believes could drive the price of this small-cap significantly higher. He discussed them on today's 7investing podcast. This show is sponsored by Prophet. Prophet's AI engine incorporates fundamental and technical analysis to make stock recommendations every month. With an outstanding track record over 16 years, it's the perfect tool for passive investors who want actionable ideas but don't have a lot of time.Through 7investing's exclusive partnership, new members can get a $50 discount and also the first two months free by visiting ⁠https://www.useprophet.com/7investing⁠But hurry: this no-upfront-cost deal is only available until July 7th!

Palantir and Upstart: Soaring Growth but Falling Stock Prices

Originally recorded: May 7, 2025

Palantir Technologies (Nasdaq: PLTR) and Upstart Holdings (Nasdaq: UPST) are two of the market's hottest stocks. Both are using AI to enhance their intelligent platforms and are seeing their top-line growth accelerate.

Yet curiously, even after reporting excellent quarterly results, both stocks are selling off significantly.

Are there hidden risks that investors are becoming more worried about? Or have the baked-in expectations simply gotten too high?

Simon digs into both companies on today's 7nvesting podcast.

As a perfect fit for an episode about AI, this show is sponsored by Prophet.

Prophet's AI engine incorporates fundamental and technical analysis to make stock recommendations every month. With an outstanding track record over 16 years, it's the perfect tool for passive investors who want actionable ideas but don't have a lot of time.

Through 7investing's exclusive partnership, new members can get a $50 discount and also the first two months free by visiting useprophet.com/7investing. This no-upfront-cost deal is only available until July 7th!

What the heck is going on at Wolfspeed?!

Originally recorded: May 6, 2025

The WSJ published an article that WOLF is now the most shorted stock in the entire US market. The company's CFO then unexpectedly stepped down.

And yet even after what appeared to be the worst-case scenario, recent negotiations have resulted in its stock price doubling within just the past two weeks.

I dug into the filings and took a closer look at a Bloomberg terminal with a special situations guru that I called up earlier this week.

Here's exactly what's going on with one of the market's most volatile stocks.

Are you ready to get started with 7investing, to see all of our active recommendations, our five monthly Best Buys, our buy/hold/sell conviction ratings, and our interactive community forum?

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We're bringing back the 7investing podcast!

After remaining dormant for a few months, 7investing founder Simon Erickson introduces the new-and-improved show format.

That will include:

• Deeper company-specific insights - including Wolfspeed's financial stability, AMD's leap into the datacenter, Palantir's stock-based compensation, and The Trade Desk's valuation (and that is all just this week!)
• New guests - including those looking at different sectors of the market such as REITs, crypto, banking, dividends, special situations, and international opportunities
• Exclusive offers - new partnerships with other investing newsletters and products with exclusive rates for the 7investing audience
• Livestream formats - recorded live and available for guests to join at riverside.fm/studio/7investing-live.

I'm excited to get started with our new-and-improved 7investing podcast. See you in the speakers!

Are you ready to get started with 7investing, to see all of our active recommendations, our five monthly Best Buys, our buy/hold/sell conviction ratings, and our interactive community forum?

If so, your first week is free at:

7investing.com/subscribe