DraftKings Faces Heavy Losses Ahead of Q3 Earnings
DraftKings Inc (NASDAQ:DKNG) has experienced a sharp decline, dropping nearly 20% in the past month as it prepares to announce third-quarter earnings Thursday after market close.
Impact on Billionaire Investors
Billionaire investors Ken Griffin and Cliff Asness face significant losses. Griffin, founder of Citadel, holds 8.07 million DraftKings shares valued at $346 million but bought at an average price of $38.53, resulting in a roughly 25% loss at current prices near $28.11.
AQR’s Cliff Asness increased his stake by over 50% to 7.15 million shares, valued at $306 million at an average cost of $36.30. With the stock close to its 52-week low of $28.04, both remain substantially underwater.
Technical Warning: The Death Cross
The most concerning signal is technical: DraftKings' 50-day moving average ($38.63) recently dropped below its 200-day moving average ($39.60), forming a [translate: Death Cross], which indicates a prolonged bearish trend.
Market Expectations
Analysts expect DraftKings to report an EPS loss of 40 cents per share on $1.23 billion in revenue, signaling continued financial challenges amid rising uncertainty.
“DraftKings stock has tumbled nearly 20% in a month, just as the sports-betting giant prepares to report its third-quarter earnings.”
Chart created using Benzinga Pro
Author's summary: DraftKings faces mounting pressure as it approaches Q3 earnings, with key investors enduring steep losses amid a technical bearish signal known as the Death Cross.
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