DraftKings Faces Significant Losses Ahead of Q3 Earnings
DraftKings Inc (NASDAQ:DKNG) has experienced a sharp decline, with its stock falling nearly 20% in the past month as it readies its third-quarter earnings report scheduled for Thursday after the market close.
Billionaire Investors Suffer Major Losses
Billionaire investors Ken Griffin of Citadel and Cliff Asness of AQR have seen their positions drop considerably. Griffin increased his stake in the second quarter to 8.07 million shares, valued at $346 million, with an average purchase price of $38.53. This leaves him down approximately 25% at current prices.
Similarly, Asness expanded his holdings by over 50%, to 7.15 million shares worth $306 million, at an average cost of $36.30. With the stock now trading near $28.11, just above its 52-week low of $28.04, both investors face substantial losses.
Technical Indicators Signal Bearish Momentum
DraftKings' 50-day moving average ($38.63) has fallen below its 200-day moving average ($39.60) — a textbook Death Cross that signals sustained bearish momentum.
Wall Street anticipates DraftKings will report an earnings per share (EPS) loss of 40 cents on $1.23 billion in revenue, heightening expectations of market volatility.
For investors like Ken Griffin and Cliff Asness, who loaded up on the stock earlier this year, the timing couldn't be worse.
Summary
The intersection of steep investor losses and a technical Death Cross highlights growing concerns for DraftKings as it approaches its third-quarter earnings announcement.
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