DraftKings Predictions Spending Plan Seen as Major Shock
Dow Jones11-07 01:37
1237 ET - DraftKings' plan to spend as much as $1.05 billion in adjusted earnings before interest, taxes, depreciation and amortization in the next fiscal year was shocking to almost everyone, Stifel analysts say. That level of spending rivals the levels of capital deployed during DraftKings' peak expansion phase from 2019 to 2022, the analysts say. On top of that, the company cut its current-year guidance, which DraftKings had initially called conservative, the analysts say. While executives' messaging was proactive about quick returns from investments, the analysts expect the stock will keep selling off given this surprise. Shares are down 27%.
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