DraftKings Stock Faces a Death Cross Before Q3 Results
DraftKings Inc. (NASDAQ:DKNG) is under pressure as billionaire investors Ken Griffin and Cliff Asness record significant losses ahead of the company’s third-quarter earnings report. The stock has dropped nearly 20% in the past month, highlighting investors’ growing anxiety.
Big Losses for Major Hedge Funds
Citadel founder Ken Griffin expanded his DraftKings position during the second quarter, bringing his holdings to 8.07 million shares worth $346 million, with an average purchase price of $38.53. At current trading levels, near $28.11, Griffin faces a paper loss of approximately 25%.
AQR Capital’s Cliff Asness also increased his stake by over 50%, now holding 7.15 million shares valued at $306 million, at an average cost of $36.30. With the share price barely above its 52-week low of $28.04, both hedge fund managers are seeing sharp declines in portfolio value.
Technical Breakdown: The Death Cross
DraftKings’ 50-day moving average ($38.63) has crossed below its 200-day average ($39.60), forming a “Death Cross” — a classic bearish indicator suggesting extended downward momentum.
Market Expectations for Q3 Earnings
Wall Street anticipates DraftKings will post a loss of $0.40 per share on revenue of $1.23 billion when it reports results after Thursday’s market close. The combination of technical weakness and looming earnings uncertainty has traders bracing for volatility.
Chart created using Benzinga Pro.
Author’s Summary
DraftKings stock has slumped ahead of earnings, leaving top investors Ken Griffin and Cliff Asness with steep unrealized losses as the Death Cross signals deeper market pessimism.