- DraftKings gained 5% on Friday following news of Disney’s ESPN deal.
- DKNG stands as a growth stock, and recession risks saw it suffer.
- DKNG hovers inside a near-term descending channel.
DraftKings (NASDAQ: DKNG) stretched its upside, surging over 5% on Friday amidst positive reports. Various news sources showed that the betting company was about to close a massive partnership with Disney’s ESPN.
It was yet to disclose the deal’s structure and size. Nevertheless, sources revealed that ESPN would use DraftKings’ platform in sports betting. The collaboration news remains substantial for DraftKings. Meanwhile, the stock has lost 40% YTD due to macro problems.
That emerges as market plans shun loss-making growth shares, preferring value-preserving alternatives. A brief assessment of the firm’s Q2 indicates a loss of 195.5 million pounds ($217 million).
Meanwhile, the loss enhanced from 275 million pounds ($305.5 million) in the previous year’s quarter. Nevertheless, the fall was healthier than feared, though that didn’t repel sellers interested in value stocks amidst a recession.
Analysts have presented mixed ratings for DraftKings. Exane BNP Paribas revealed an underperforming rating on DKNG on 6 October, with a $12 price target. Meanwhile, that rating welcomed a 4% share drop, currently trading at $16. Meanwhile, TipRank rates DKNG a moderate purchase with a price target of $24.27.
DraftKings Trading on Descending Channel
The technical side shows DraftKings trading inside a descending channel the Relative Strength Index read at 51 displays an almost midpoint and equal bearish and bullish positions.
How Lucrative is DraftKings
This analysis alleviated bullish calls for DraftKings due to the descending track. Nevertheless, the Relative Strength Index reading and recent revivals from the bottom at $10 might attract buyers. Meanwhile, failure to overcome the channel can see the stock exploring lower price levels at $14.
Friday sessions saw DraftKings stock surging 5%. That came after the news about Disney’s partnership. Meanwhile, recession worries had the growth stock suffering. The global economy has remained downbeat, hurting most businesses globally.
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