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Draftking's stock price has been hammered in recent days. In fact, it's down 43 percent since March.
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Brad Allen of LegalSportsReport writes, this trend is more to do with high-growth tech stocks in general than with the emerging US legal sports betting scene.
“I think DKNG has gotten caught up in the ‘growth’ to ‘value’ reallocation from investors,” Macquarie Capital analyst Chad Beynon told LSR, noting that ‘hyper growth’ software companies expected to grow over 30% were down 35% year-to-date.
“It is some much-needed froth being wrung from the market,” said one Wall Street analyst who asked not to be named. “DraftKings is still only back to where it was in January so it is hardly catastrophic.”
Investors on Wall Street have been shunning Draftkings.
The selloff has widened the gap between its stock price and the average analyst target by the most ever, according to data compiled by Bloomberg.
Bailey Lipschultz of Yahoo Finance writes:
DraftKings has been caught under pressure alongside high-flying companies that have yet to turn a profit like Uber Technologies Inc. and Teladoc Health Inc. as inflation fears whipsaw the broader market.
Lipschultz also points out that Penn National has seen its stock price plunge in recent weeks as well, down 8.4% on Wednesday and the lowest since Dec. 11.
Sports Betting in Washington State Soon
The Kalispels are one of numerous Washington tribes that have received preliminary approval to pursue sports gambling, said Brian Considine, legislative manager of the Washington state Gambling Commission.
The news comes after the state and the Kalispel Tribe of Indians reached an agreement this week.
A tribal spokesman said Tuesday the move is one of the biggest developments for the Kalispel Tribe since it first got approval in 1998 to build Northern Quest.
Kevin Zenishek, executive director of casino operations at Northern Quest, agreed.
"This is pretty monumental. This is a big deal," he told the Spokesman-Review.
For now, sports betting will only be permitted at the tribal casinos.
A tentative deal between the Tulalip Tribes and the Washington State Gambling Commission allows for mobile sports wagering at the Tulalip Resort and Quil Ceda Creek casinos in Snohomish County.
Mobile sports betting will not be available statewide for access in one's own home.
- Gilbert Horowitz, Gambling911.com
