DraftKings Shunned Even as Wall Street Heavyweights Say Buy

DraftKings Shunned Even as Wall Street Heavyweights Say Buy

(Bloomberg) -- Investors are shunning DraftKings Inc. despite signals from some of Wall Street’s most prominent names to buy the shares of the former high-flying online gaming company.

Shares of the seemingly ubiquitous betting site have slumped about 40% since their March record amid a dearth of top sporting events and after the company reported wider than expected losses. The selloff has widened the gap between its stock price and the average analyst target by the most ever, according to data compiled by Bloomberg.

And while that has led to Goldman Sachs recommending investors buy the dip and Cathie Wood’s ARK Investment Management lapping up shares of the Boston-based company, most investors aren’t budging. The stock slumped as much as 5.9% to $41.44 on Wednesday, the eighth decline in the past 10 trading sessions. After ending last year up more than 300%, the shares have lapsed into oversold territory for the first time since it went public via a reverse merger in April 2020.