DraftKings tumbles 27.0% despite upbeat quarterly results

DraftKings (DKNG.US) shares plunged over 27.0% on Friday despite the fact that the sports betting company  raised its financial forecasts for 2022 and reported a smaller-than-expected quarterly loss and revenue that beat analysts’ estimates. On the flip side, the company warned a prolonged economic downturn could impact spending by its customers. Also J.P. Morgan analyst Joseph Greff wrote in a research note Friday that guidance for a full-year Ebitda loss (company expects loss between $575 million and $475 million) was “disappointing as this outlook follows recent third-quarter earnings commentary from DraftKings’ online sports betting/digital competitors who have talked up an accelerated path to profitability and suggests that DraftKings is lagging peers on a path to positive Ebitda generation.”

DraftKings (DKNG.US) stock launched today's session with a bearish price gap and is currently testing the lower limit of the descending channel. Should break lower occur, downward move may deepen towards support at $9.50, where 2019 lows are located. Source: xStation5