The No. 1 Reason Not to Bet on DraftKings Even After the Sell-Off
All bets are off on DraftKings (NASDAQ: DKNG) at this point; the online gaming stock has been through it all. The pandemic fueled massive growth for the company as consumers were forced to shift to mobile platforms in order to place their bets. As a result, DraftKings went on a massive bull run with the stock price extending beyond $70 in early 2021.
It's hard to believe this happened when noting the company's situation today. In the past six months, DraftKings stock has plunged 70%, a monumental decline compared to the S&P 500's negative 8% return over the same time frame.
Due to astonishing inflation, rising interest rates, and fear linked to Russia's invasion of Ukraine, the stock market has been in a muddle of late. Consequently, investors have abandoned high-growth companies that are not yet profitable or cash-flow positive.
Source Fool.com
