DraftKings Faces Sharp Decline Ahead of Q3 Earnings
DraftKings Inc (NASDAQ:DKNG) experienced a significant drop, with its stock falling nearly 20% within a month as it approaches its third-quarter earnings report after market close on Thursday.
Billionaire Investors Suffer Losses
Billionaire investors Ken Griffin and Cliff Asness are seeing substantial losses. Griffin, from Citadel, increased his stake in the second quarter to 8.07 million shares valued at $346 million, buying at an average price of $38.53. This now leaves him down about 25% as the stock trades near $28.11.
Cliff Asness of AQR similarly boosted his holding by over 50% to 7.15 million shares, worth $306 million, at an average cost of $36.30. Both investors face significant unrealized losses with current prices near their 52-week low of $28.04.
Market Expectations and Technical Signals
Wall Street anticipates DraftKings to report an EPS loss of 40 cents per share on $1.23 billion revenue, generating cautious sentiment ahead of earnings.
"DraftKings' 50-day moving average ($38.63) has fallen below its 200-day ($39.60) — a textbook Death Cross that signals sustained bearish momentum."
Implications of the Death Cross
This technical indicator signals potential continued weakness, adding pressure on the stock as it navigates earnings volatility.
Summary: DraftKings stock's sharp decline and emerging Death Cross have resulted in significant losses for top investors, signaling investor caution ahead of its Q3 earnings release.
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