DraftKings Stock Recovers From Post-Earnings Slump Amid Broad Market Decline
DraftKings Inc. (DKNG) staged a notable recovery on Nov. 7, erasing early losses that followed its disappointing third-quarter earnings report. The stock reversed a 10% premarket drop to trade 2% higher in the afternoon session, defying a broader market selloff that saw the Nasdaq Composite fall 1.5%.
The sports betting operator reported a wider-than-expected loss of $0.52 per share, missing analyst estimates by $0.09. Revenue of $1.14 billion fell short of the $1.20 billion consensus. Despite the weak results, investors appeared to reassess the company's prospects, bidding shares higher even as guidance remained lackluster.
This resilience comes against a challenging backdrop for growth stocks, with DKNG still down 21% year-to-date. The rebound suggests some traders see value at current levels, though fundamental concerns persist about the company's path to profitability.
