Connect with us

Hi, what are you looking for?


Is DraftKings a good stock to buy after Disney deal reports?

DraftKings Inc. (NASDAQ:DKNG) extended gains by more than 5% on Friday after positive reports. Different news sources indicated that the sports-betting firm was close to a huge deal with Walt Disney’s ESPN. The size and structure of the deal were not disclosed. However, sources did indicate that ESPN will capitalise on DraftKings’s network in sports betting.

The partnership reports are significant for DraftKings. The stock has fallen 40% year-to-date owing to the macro issues. That comes as investors shun loss-making growth names in preference for value-preserving alternatives.

A brief check on the company’s second quarter shows that it reported a loss of $217 million or £195.5 million. The loss improved from $305.5 million or £275 million in the prior year’s quarter. The loss was better than feared, but that did not deter sellers looking for value stocks in a recession.

Analysts’ ratings have been mixed for DraftKings. On October 6, Exane BNP Paribas issued an underperforming rating on the stock, with a price target of $12. The rating forced a 4% decline in the stock, which currently trades at $16. TipRank rates the stock a moderate buy with a $24.27 price target.

DraftKings trades on a descending channel

Source – TradingView

Turning to the technical side, DraftKings trades on a descending channel. An RSI reading of 51 indicates almost a midpoint and equal bullish and bearish positions.

How attractive is DraftKings

This article dismisses a bull call for DraftKings based on the descending channel. However, the RSI reading and the latest recoveries from the $10 bottom could attract buyers. Should the stock fail to break up from the channel, we should watch for price action lower at $14.

The post Is DraftKings a good stock to buy after Disney deal reports? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...


    U.S. District Court Judge Reed O’Connor recently ruled to uphold the rights of employers granted in the Religious Freedom Restoration Act, rather than uphold...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023