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Shares of sports-betting firm DraftKings fell Tuesday after Hindenburg Research announced it had taken a short position against the stock.

The stock, which has been one of the best performers on Wall Street since going public through a merger with a special purpose acquisition company last year, was down more than 8% in early trading.

In the report, Hindenburg compares DraftKings' valuation to that of rival firms and questions the company's promotional spend and future potential in the highly competitive sports-gambling landscape.

The report also alleges that SBTech, a European technology company that merged with DraftKings as part of the SPAC deal, generates significant revenue from questionable gambling practices in overseas markets, particularly in some Asian markets.

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