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Why DraftKings Stock Plunged Today

·2 min read
Why DraftKings Stock Plunged Today
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  • DKNG

Shares of DraftKings (NASDAQ: DKNG) fell 9.4% on Friday after noted short-seller Jim Chanos said he was betting against the sports betting company. "If you quadrupled DraftKings' revenue and gross profit ... and take their marketing spending, which is currently over 100% of revenue, to 10% of revenue, which is their target, and you keep overhead at today's level ... DraftKings would still be losing $200 million a quarter," Chanos said. It should be noted, however, that DraftKings CEO Jason Robins vehemently disagrees with that view.