DraftKings Experiences a Death Cross Ahead of Q3 Earnings
DraftKings Inc (NASDAQ: DKNG) has seen its stock drop nearly 20% over the past month, just before its third-quarter earnings report scheduled for Thursday after market close. This decline comes as billionaire investors, including Ken Griffin and Cliff Asness, face significant losses.
Investor Losses and Stock Performance
- Ken Griffin of Citadel increased his DraftKings holdings in Q2 to 8.07 million shares, valued at $346 million, with an average price of $38.53 per share. At current prices around $28.11, Griffin faces an approximate 25% loss.
- Cliff Asness from AQR raised his stake by over 50%, now owning 7.15 million shares worth $306 million, with an average price of $36.30. He is also experiencing substantial losses as the price hovers near its 52-week low of $28.04.
Market Expectations and Technical Indicators
Wall Street anticipates an EPS loss of 40 cents per share on revenue of $1.23 billion for DraftKings this quarter. Traders are preparing for potential volatility as the company’s earnings approach.
"DraftKings' 50-day moving average ($38.63) has fallen below its 200-day ($39.60) — a textbook Death Cross that signals sustained bearish momentum."
Summary
This technical signal, known as a Death Cross, suggests a continued downward trend, intensifying the concerns among investors and traders alike.
Author's summary: DraftKings' stock decline ahead of Q3 earnings, coupled with a Death Cross technical pattern, has led to significant investor losses and forewarns ongoing market challenges.
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