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After Reporting Q3, is DraftKings a Stock Worth Buying?

Published 11/11/2021, 10:09 AM
Updated 11/11/2021, 11:30 AM
© Reuters.  After Reporting Q3, is DraftKings a Stock Worth Buying?
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Online sports betting company DraftKings’ (DKNG) shares have declined in price since the company reported its third-quarter earnings because its losses increased significantly. So, can the stock rebound based on the company’s several strategic partnerships? Let’s find out.Boston, Mass.-based digital sports entertainment and gaming company DraftKings Inc. (NASDAQ:DKNG) has been making consistent product and services innovations and has also expanded in the non-fungible token (NFT) space. On October 18, Polygon announced a blockchain collaboration with DraftKings Marketplace for mainstream accessibility to support custom NFT drops along with secondary-market transactions.

However, DKNG’s shares have declined 14.3% in price over the past month and 21% over the past three months to close yesterday’s trading session at $41.08.

In addition, the stock has retreated 12.5% since the company reported its third-quarter earnings on November 5. The company’s losses increased significantly in the quarter, and it continues to face stiff competition from players such as Caesars (NASDAQ:CZR) Entertainment, Inc. (CZR), MGM Resorts International (NYSE:MGM), and Penn National Gaming, Inc. (NASDAQ:PENN). Furthermore, hedge fund’s interest in the stock has declined lately. So, DKNG’s near-term prospects look bleak.

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