DraftKings Faces Decline Ahead of Q3 Earnings
DraftKings (NASDAQ:DKNG) is experiencing a significant drop in stock value, impacting billionaire investors Ken Griffin and Cliff Asness before the upcoming third-quarter earnings report.
Investor Losses
Ken Griffin of Citadel increased his DraftKings holding in Q2 to 8.07 million shares valued at $346 million, with an average price of $38.53 per share. Currently, he faces a loss of about 25%, as the stock trades near $28.11.
Similarly, Cliff Asness of AQR raised his stake by over 50% to 7.15 million shares, worth $306 million at an average cost of $36.30. Both investors are now holding shares close to their 52-week low of $28.04.
Market Expectations and Technical Analysis
Wall Street anticipates DraftKings to report a loss of 40 cents per share on $1.23 billion in revenue for Q3. The stock's recent "Death Cross," where the 50-day moving average ($38.63) has fallen below the 200-day moving average ($39.60), indicates ongoing bearish momentum.
"DraftKings Inc just hit a Death Cross — and its billionaire backers are feeling the chill."
"DraftKings stock has tumbled nearly 20% in a month, just as the sports-betting giant prepares to report its third-quarter earnings."
Summary
DraftKings' stock decline and bearish technical signals pose substantial challenges for key investors entering Q3 earnings, suggesting potential volatility ahead.
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