Home
News
DraftKings Inc. (NASDAQ: DKNG) stock found itself in a struggling zone. The stock price has been consolidating since the start of November. DKNG stock tumbled 4.26% in a day and is currently trading at 14.83 USD. Decreasing stock rating for fantasy gaming company’s stock by JP Morgan analyst is likely behind the price drop.
DraftKings (DKNG) Stock Price Chart Movement
The chart shows an alt bat pattern from August 2022 to October 2022. The pattern justifies the Fibonacci theory where the price must retrace from a certain point after creating the pattern. The price started rising from August and deflected off the 21 USD resistance to plunge to 15 USD support just to make a rebound. It struggled to reach the resistance but failed and fell to around 14 USD by the end of September 2022. This is the point where Fibonacci theory came into play.
The stock price is currently down by more than 50% from year over year level. For context, the tech-focused NASDAQ is in way better shape with 0.55% up YTD.
Investors Pulled it Down and Can Bring it Up
Earlier JP Morgan put the DKNG stock in neutral. However, not it was reported that an investment banking giant analyst adjusted the ratings for the upcoming year. The stock witnessed downgrading of its rating from neutral to underweight.
Several analysts put the price target for DKNG stock at around 20 USD for 2023. The company reported revenue of 1.30 billion USD in 2021, almost double from previous year. While the revenue for the 6.65 billion USD market cap company is expected to come about 2.17 billion USD for 2022.
The stock price tumbled following the Q3 2022 earnings release in November.
Earlier TheCoinRepublic reported the DraftKings revenue during the quarter remained 502 million USD. The numbers were more than expected as well as the previous year’s third quarter. Earnings also remained upto 136% higher than last year’s Q3. In addition it also successfully beat the forecasts.
Despite the quite good performance, the stock price witnessed tumble as a result of investors’ frustration given the company did not showcase an optimist outlook for profitability.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
