Meta builds prediction market app 'Arena', shares slide as investors weigh strategic shift

Shares of Meta Platforms and DraftKings fell after reports emerged that the social media giant is developing a prediction market platform, adding to recent concerns over capital allocation.

By Handelsavisen Newsroom · Automated 2026-06-23 17:48 UTC · 1 min read

Meta Platforms shares declined in late trading Tuesday after a New York Times report revealed the company is developing a prediction market application.

The internal project, codenamed "Arena," was directed by CEO Mark Zuckerberg, according to two employees with knowledge of the plans.

The move signals a potential expansion into a sector traditionally dominated by specialized betting and forecasting platforms.

The news weighed on Meta's stock, which fell in the session.

DraftKings shares also dropped, as investors assessed the competitive implications of a major tech player entering the prediction market space.

The sell-off adds to recent pressure on Meta, which saw its stock decline more than 5% in late trading earlier this week following reports that the company is exploring a multi-billion dollar equity offering to fund its artificial intelligence ambitions.