DraftKings Faces Major Setback Ahead of Q3 Earnings
DraftKings Inc (NASDAQ:DKNG) has experienced a significant drop, with its stock falling nearly 20% in the past month as it prepares to announce Q3 earnings on Thursday after market close.
Billionaire Investors Suffer Losses
Major backers Ken Griffin and Cliff Asness are seeing steep losses. Citadel’s Ken Griffin increased his DraftKings stake in Q2 and now holds 8.07 million shares valued at $346 million, purchased at an average price of $38.53. With the stock trading near $28.11, he faces about a 25% loss.
Similarly, AQR's Cliff Asness raised his position by over 50% to 7.15 million shares worth $306 million at an average price of $36.30. Both investors are deep in red as the share price nears its 52-week low of $28.04.
Technical Indicators Signal Bearish Trend
The stock's 50-day moving average ($38.63) has fallen below its 200-day moving average ($39.60), creating a [translate:Death Cross]. This classic technical signal indicates ongoing bearish momentum for DraftKings.
Market Expectations for Earnings
Wall Street anticipates a loss per share of $0.40 on revenues of $1.23 billion, suggesting volatility in the upcoming report.
DraftKings' 50-day moving average ($38.63) has fallen below its 200-day ($39.60) — a textbook Death Cross that signals sustained bearish momentum.
Author’s summary: DraftKings faces a sharp stock decline and technical bearish signals ahead of Q3 earnings, causing significant losses for top investors Ken Griffin and Cliff Asness.