DraftKings Reports Q2 Miss, Analysts Wonder If Surcharges On Winnings Are A 'Gamble'
Portfolio Pulse from Priya Nigam
DraftKings Inc (NASDAQ: DKNG) reported a Q2 earnings miss, leading to a significant drop in its stock price. Despite the miss, several analysts maintained their Buy ratings but adjusted their price targets. The company raised its revenue guidance but lowered its EBITDA guidance, citing higher promotion costs and customer-friendly outcomes. A proposed surcharge on winnings in high-tax jurisdictions is seen as a potential risk to market share.
August 02, 2024 | 4:43 pm
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DraftKings reported a Q2 earnings miss, causing a 7.97% drop in its stock price. Analysts maintained Buy ratings but adjusted price targets. The company raised its revenue guidance but lowered its EBITDA guidance. A proposed surcharge on winnings in high-tax jurisdictions could impact market share.
The Q2 earnings miss and subsequent drop in stock price indicate immediate negative sentiment. While analysts maintain Buy ratings, the adjusted price targets and lowered EBITDA guidance suggest caution. The proposed surcharge on winnings could further impact market share, adding to the uncertainty.
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