DraftKings Faces Downturn Ahead of Q3 Earnings
DraftKings Inc (NASDAQ:DKNG) recently triggered a Death Cross, causing concern among billionaire investors Ken Griffin and Cliff Asness. The stock has dropped nearly 20% in the past month as the company prepares to release its third-quarter earnings report on Thursday after market close.
Investor Losses
Ken Griffin of Citadel increased his DraftKings holdings in Q2, now owning 8.07 million shares valued at $346 million, purchased at an average price of $38.53. With the current trading price near $28.11, Griffin faces an estimated loss of 25%.
Similarly, Cliff Asness of AQR raised his stake by over 50% to 7.15 million shares valued at $306 million, acquired at an average cost of $36.30. The stock's current price leaves Asness also deep in the red.
Market Outlook
DraftKings shares hover just above their 52-week low of $28.04, intensifying uncertainty ahead of earnings. Analysts predict an EPS loss of 40 cents on $1.23 billion in revenue, suggesting potential volatility for traders.
Technical Analysis
"DraftKings' 50-day moving average ($38.63) has fallen below its 200-day average ($39.60) — a textbook Death Cross that signals sustained bearish momentum."
Summary
This technical indicator signals continued downward pressure on DraftKings shares, reflecting market skepticism as earnings approach.
Author's summary: DraftKings shares plunged nearly 20% ahead of Q3 earnings, causing significant losses for major investors and signaling ongoing bearish momentum through a classic technical Death Cross pattern.
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