DraftKings (NASDAQ:DKNG) shares clocked seven straight sessions of losses on Wednesday, as the stock was 6.2% lower at $35.09.
The digital sports entertainment and gaming company lost 13.6% in the preceding six sessions. Overall, the stock has gained nearly 1% so far this year, compared to the 13.7% rise in the broader S&P 500 Index (SP500).
DKNG is down 26% over the past one month.
DraftKings stock fell after prediction platform Kalshi stunned the sports betting sector with huge trading volume.
Looking at Seeking Alpha’s Quant Rating, DKNG has a Hold rating with a score of 3.1 out of 5. The company received D+ in the prospect of profitability and an A- in the growth factor.
Seeking Alpha analysts are also cautious and see the stock as a Hold.
Turing to the Wall Street, 29 analysts have given the stock a Buy or above rating. Five gave the stock hold recommendation, while none gave Sell or lower rating to DKNG.
“The new federal tax on gambling losses will probably be repealed, as it was likely inadvertent. If, however, it were implemented, it would be catastrophic for DraftKings, potentially lowering profits as much as 70%,” pointed out a recent Seeking Alpha analysis.