Why DraftKings Inc. (DKNG) Performed Worst On Tuesday?

We recently published a list of Pulse of The Market: Tuesday’s 10 Worst Performers. In this article, we are going to take a look at where DraftKings Inc. (NASDAQ:DKNG) stands against other Tuesday’s worst performers.

Wall Street finished Tuesday’s trading in a lackluster fashion, with all major indices ending in the green territory, but only eking out small gains.

The tech-heavy Nasdaq rallied the most, up by 0.46 percent, followed by the S&P 500 with 0.16 percent, and the Dow Jones with a marginal 0.01 percent.

The muted trading spilled over into individual stocks, with 10 in particular posting significant losses. In this article, let’s explore the top 10 companies that performed poorly on Tuesday.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A woman at a betting table paying out customers who won their sports bets.

DraftKings Inc. (NASDAQ:DKNG)

DraftKings snapped a two-day winning streak on Tuesday, shedding 3.87 percent to close at $38.95 apiece amid a lackluster overall market performance spilling over into the company.

DKNG has taken a proactive stance in enhancing its product offerings and services while expanding its market reach through strategic acquisitions and partnerships.

It also posted a more bullish outlook for its business, with revenue guidance adjusted higher to between $6.3 billion and $6.6 billion, from the $6.2 billion low-end targeted previously.

In the fourth quarter of the year, DKNG widened its net loss by 200 percent to $134 million from $44.6 million registered in the same period last year, as revenues dropped by 13 percent to $1.39 billion from $1.23 billion.

Despite the decline, net losses in full-year 2024 narrowed by 36.8 percent to $507 million from $802 million in 2023, as revenues grew 30 percent to $4.77 billion from $3.66 billion year-on-year.

Overall, DKNG ranks 8th on our list of Tuesday’s worst performers. While we acknowledge the potential of DKNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as DKNG but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.