DraftKings Faces Decline Ahead of Q3 Earnings
DraftKings Inc (NASDAQ:DKNG) saw its stock drop nearly 20% over the past month, coinciding with its upcoming third-quarter earnings report scheduled for Thursday after market close. This downturn has significantly impacted billionaire investors Ken Griffin and Cliff Asness.
Major Investors Experience Losses
- Ken Griffin of Citadel increased his DraftKings holdings in Q2 to 8.07 million shares, valued at $346 million, averaging $38.53 per share. Current prices reflect a loss of about 25%.
- Cliff Asness from AQR also raised his stake by over 50%, now holding 7.15 million shares worth $306 million, bought at an average price of $36.30, now trading near $28.11.
Stock Performance and Market Outlook
The stock is close to its 52-week low of $28.04, leaving both investors deep in the red. Wall Street anticipates a third-quarter loss of 40 cents per share on $1.23 billion in revenue, signaling continued volatility.
Technical Analysis Highlights a Bearish Signal
DraftKings' 50-day moving average ($38.63) has dropped below its 200-day moving average ($39.60), forming a Death Cross that often indicates prolonged downward momentum.
Summary
This technical signal combined with disappointing earnings expectations is causing significant concern for investors and traders alike.
Author's note: DraftKings' sharp stock decline and bearish technical indicators set a challenging stage for its Q3 earnings, deeply affecting its major investors.
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