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Why DraftKings' Stock Price Jumped on Tuesday

Today's video focuses on recent news affecting DraftKings (NASDAQ: DKNG) and why its stock price went up over 6% at one point on Oct. 26. Here are some highlights from the video.

  1. In late September, reports appeared that DraftKings was making a $22 billion bid for Entain (LSE:ENT). On Oct. 26, DraftKings announced that it would not make a firm offer for Entain. Based on the price action movement, investors are happy that the acquisition is not going through.
  2. Currently, DraftKings is trading at a forward-one-year-price-to-sales ratio of 11, and its stock price is down over 30% from its 52-week high closing.
  3. DraftKings' management is still highly confident it will maintain a leadership position and achieve long-term growth in North America. Investors are still excited about DraftKings' growth as more states legalize online sports betting, fantasy sportsbooks, and online casinos.
  4. Entain's stock price dropped over 5% on the day, trading in the opposite direction from DraftKings.

Click the video below for my full thoughts and analysis.

*Stock prices used were the midday prices of Oct. 26, 2021. The video was published on Oct. 26, 2021.

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Jose Najarro owns shares of DraftKings Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.


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