DraftKings: Earnings Selloff Meets The Bullish Reversal

Nov. 10, 2022 1:58 PM ETDraftKings Inc. (DKNG)4 Comments


  • DraftKings buyers are attempting to reverse the post-earnings selloff last week, sending short-sellers into a massive covering rally. The Fed's painful rate hikes could be nearing their end.
  • Management remains confident in its path toward profitability. However, its revised outlook didn't impress the market, as the market had anticipated better execution.
  • As such, we believe the battering last week helped to de-risk the entry levels for patient investors. However, we didn't anticipate such a sharp reversal after the CPI release.
  • Therefore, investors can consider waiting for a pullback first before adding exposure.
  • Revise from Hold to Speculative Buy.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
DraftKings Headquarters Opening

Darren McCollester


DraftKings Inc.'s (NASDAQ:DKNG) post-earnings tumble last week has met with a robust recovery as the Fed's rate hikes could be potentially nearing their end, as October CPI's print came in well below the consensus estimates.

As such, unprofitable growth stocks

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Disclosure: I/we have a beneficial long position in the shares of DKNG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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