DraftKings Stock Is Dropping Wednesday: What's Going On?
Portfolio Pulse from Adam Eckert
DraftKings Inc (NASDAQ:DKNG) shares dropped following an exclusive online sports betting deal between PENN Entertainment Inc (NASDAQ:PENN) and ESPN, a Walt Disney Co's (NYSE:DIS) company. The deal gives Penn exclusive rights to the ESPN Bet trademark for online sports betting in the U.S. for an initial 10-year term. Penn also sold 100% of the Barstool Sports common stock back to Dave Portnoy. Despite the initial sell-off, analysts upgraded DraftKings from Underweight to Neutral and raised the price target.
August 09, 2023 | 1:22 pm
News sentiment analysis
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NEGATIVE IMPACT
DraftKings shares dropped after PENN secured an exclusive deal with ESPN. Despite this, analysts upgraded the stock from Underweight to Neutral.
The exclusive deal between PENN and ESPN could potentially limit DraftKings' market share in the online sports betting space. However, analysts' upgrade of the stock indicates a belief in its resilience.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Disney's ESPN secured an exclusive deal with PENN for online sports betting. This could potentially increase ESPN's revenues.
The exclusive deal with PENN could potentially increase ESPN's revenues from online sports betting. This could have a positive impact on Disney's overall financial performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
PENN secured an exclusive deal with ESPN for online sports betting, which could potentially increase its market share. The company also sold 100% of the Barstool Sports common stock back to Dave Portnoy.
The exclusive deal with ESPN could potentially increase PENN's market share in the online sports betting space. The sale of Barstool Sports common stock could also have financial implications for the company.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100