© Reuters.

By Christiana Sciaudone

Investing.com — Betting on gambling is losing its luster. 

DraftKings (NASDAQ:) is down more than 4% after Berenberg initiated coverage with a sell. The shares were also called a best idea short by Hedgeye.

The online gambling company had as U.S. states have begun to legalize the activity amid a need for tax revenue and closures of businesses because of efforts to stem the spread of Covid-19. 

According to Hedgeye, DraftKings has “a big valuation” that “may not withstand” the expected decelerating growth post vaccination along with “the impact of market share pressure on sentiment,” The Fly reported. 

Berenberg gave the gambling group a price target of $41. That compares to Piper Sandler (NYSE:)’s price target of $100, a Street-high that was set last week, according to Investing.com.

The company is expected to report record quarterly sales for the period ended in December, totaling $231 million with a loss per share of 42 cents, according to data compiled by Investing.com.

DraftKings peer Penn National Gaming (NASDAQ:) dropped about 2%.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *