Why DraftKings Stock Is Falling Sharply Today
Shares of DraftKings (NASDAQ: DKNG) were falling 6% heading into noontime trading Monday after a raft of analysts downgraded their price targets on the sportsbook's stock. DraftKings posted an impressive beat-and-raise performance last week after reporting revenue that was ahead of Wall Street's forecasts and at the high end of management's own guidance. If the lowered price targets appear a bit incongruous considering how much Wall Street was lauding the company just a few days ago, a Morgan Stanley analyst said that on second thought, DraftKings is guiding to greater EBITDA losses this year and is going to be issuing more stock than it expected.
