DraftKings Faces Death Cross Before Q3 Earnings
DraftKings [finance:DraftKings Inc.] shares plunged nearly 20% over the past month, triggering a technical "Death Cross" ahead of its third-quarter earnings report expected on Thursday after market close.
The sudden downturn has deeply affected major investors Ken Griffin and Cliff Asness, who expanded their stakes earlier this year. With the stock hovering near $28.11, just above its 52-week low of $28.04, both hedge fund figures are now sitting on substantial paper losses.
Billionaire Investors Take the Hit
- Ken Griffin, founder of Citadel [finance:Citadel Securities LLC], now holds 8.07 million DraftKings shares valued at about $346 million, with an average cost of $38.53 — roughly 25% below current market levels.
- Cliff Asness of AQR [finance:AQR Capital Management, LLC] increased his position by over 50% to 7.15 million shares worth approximately $306 million, with an average price of $36.30.
Market Outlook and Expectations
Wall Street analysts forecast a loss of $0.40 per share on $1.23 billion in revenue for the quarter, signaling potential volatility in the stock once results are released.
“DraftKings’ 50-day moving average ($38.63) has fallen below its 200-day ($39.60) — a classic Death Cross that reflects continued bearish momentum.”
Technical Analysis Concern
The Death Cross chart pattern indicates growing pessimism among traders, as short-term trends weaken relative to long-term performance. This development often precedes extended selling pressure.
Author’s summary: DraftKings’ sharp decline and technical Death Cross come at the worst possible time for its billionaire backers, who now face steep unrealized losses ahead of Q3 results.
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