DraftKings share price dives 16% as Nasdaq stocks falter in bear market

main__photo

DraftKings took the unfortunate title of worst performing gambling stock on the Nasdaq yesterday after its stock closed at just $11.03 following a daily downturn of 15.8%.

The closing price ranked as the third lowest in DraftKings’ history, behind only 9 May ($10.99) and 11 May ($10.27) as the operator’s market cap finished at $4.82bn.

The decline coincided with a sharp dip across the public markets to open the week as investors grow increasingly concerned over the state of the global economy.

The Dow fell by 2.8%, while Nasdaq dropped by 4.7%. The S&P 500 stooped by 3.9% across the board, representing a new low for the year.

DraftKings is likely being sold off as investors jump away from growth stocks and take up more defensive positions to protect their investments, while concerns remain over its long-term path to profitability.

Yesterday saw all 11 S&P sectors trade lower, with energy being the weakest performing segment. This was partly due to concerns over China’s rising Covid-19 case numbers.

Gambling also suffered, however, particularly on Nasdaq, where Super Group (-13.31%), Caesars Entertainment (-12.88%), Genius Sports (-12.62%) and Penn National Gaming (-11.44%) were all down by double digits alongside DraftKings.

Elsewhere, MGM Resorts, Rush Street Interactive, Sportradar, Las Vegas Sands, GAN, Wynn Resorts, IGT and Light & Wonder all dealt with daily declines of between 6% and 10%.

Gambling.com Group, which will join the Russell 3000 index later this month, finished the day as the only Nasdaq-listed iGaming stock in the green (+3.90%).

Away from our industry, Tesla ended up trading 7.10% down, while Meta and Amazon dropped by 6.44% and 5.45% respectively.

About the author

photo
Jake Evans

Jake Evans is an NCTJ-accredited journalist and editor who has covered the online gaming and sports betting industry since 2017. He is the managing editor of iGaming NEXT and has previously worked in both content and data for EGR, Stats Perform and Football Radar.

Related Stories