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Stock impact report

DraftKings Craters 6% as Predictions Product Costs Spook Investors [Yahoo! Finance]

DraftKings Inc. - Class A (DKNG) 
Company Research Source: Yahoo! Finance
The Predictions product diverges from DraftKings' path to profitability, raising concerns that the company will sacrifice margins for customer acquisition. The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE DraftKings NASDAQ:DKNG ) stock is down 6% in Thursday afternoon trading, falling from a prior close of $23.94 to $22 and change. The drop adds to what's already been a brutal stretch for the stock, which already entered today's session down 31% year-to-date. Today's catalyst is familiar to anyone who's followed DraftKings for the past year: the company is spending now, with revenue expected later. Investors are reacting to renewed concerns about the upfront cost structure of the company's new Predictions product, which isn't expected to generate any revenue in 2026. For a stock that was supposed to be turning a corner after posting its first-ever full-year GAAP profit, this has been a tough pill to swallow. Today's decline also diverg Show less Read more
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