DraftKings Faces Significant Losses Before Q3 Earnings
DraftKings Inc ([translate:NASDAQ:DKNG]) has experienced a sharp decline, with its stock dropping nearly 20% over the past month as it approaches its third-quarter earnings report after market close on Thursday.
Billionaire Investors Suffer Heavy Losses
Billionaire backers Ken Griffin and Cliff Asness, who increased their holdings earlier this year, are now facing substantial losses. Ken Griffin of Citadel holds 8.07 million shares valued at $346 million, purchased at an average price of $38.53, resulting in a roughly 25% loss at current prices.
Cliff Asness from AQR increased his stake by more than 50% to 7.15 million shares, worth $306 million at an average cost of $36.30. With shares trading near $28.11, just above the 52-week low of $28.04, both investors are holding significant unrealized losses.
Technical Indicators Signal Trouble
DraftKings recently triggered a [translate:Death Cross]—a technical pattern where the 50-day moving average ($38.63) crosses below the 200-day moving average ($39.60), indicating sustained bearish momentum and potential further downside risk.
Upcoming Earnings and Market Expectations
Investors anticipate volatility as the company reports its earnings. Wall Street estimates an EPS loss of 40 cents per share on revenue of $1.23 billion.
DraftKings Inc (NASDAQ:DKNG) just hit a Death Cross — and its billionaire backers are feeling the chill.
The 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 is under pressure with a 20% stock drop and a critical Death Cross technical signal, causing significant losses for major investors ahead of the Q3 earnings report.
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