Markets

Why DraftKings Stock Is Tumbling Today

What happened

Shares of DraftKings (NASDAQ: DKNG) slid as much as 11.4% in morning trading Monday as the Dow Jones Industrial Average dove over 800 points, or about 3%, at the open.

So what

Shares of the sports-betting shop have quintupled since the company's initial public offering late last year, and recently hit an all-time high of $55.70 as the return of sports from the pandemic closures had people itching to wager on team sports. New Jersey reported the biggest August haul of any state ever for sports betting.

Sports fans cheering

Image source: Getty Images.

Now what

Having come so far, so fast, it's not surprising DraftKings' stock is tumbling on market weakness. Many investors are probably banking profits they made, which accounts for it falling more sharply than the indexes.

Yet the future still holds a lot of potential. Pennsylvania reported its largest sports-betting take since it legalized wagering on events, and DraftKings also recently signed on to become the exclusive sports-betting platform of football's New York Giants. It's been the proximity to the storied New York sports franchises that has helped make New Jersey the sports-betting capital of the country.

10 stocks we like better than DraftKings Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and DraftKings Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of August 1, 2020

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DKNG

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More