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Could DraftKings Stock Drop To $23?
Forbes· 2025-10-28 14:05
Core Viewpoint - DraftKings (DKNG) stock has experienced a significant decline of 22.1% in less than a month, dropping from $42.32 on September 26, 2025, to $32.96, with potential for further decreases due to its extremely high valuation [1] Stock Performance Insights - Historically, DKNG has returned a median of 8.9% over one year and 48% as the peak return following sharp dips greater than 30% within 30 days [2][6] - The stock has experienced 8 events since January 1, 2010, where it dipped by 30% within 30 days [4] - The median duration to peak return after a dip event is 132 days, with a median maximum drawdown of -2.3% within a year following the dip [6] Financial Quality Assessment - Key financial metrics such as revenue growth, profitability, cash flow, and balance sheet strength should be analyzed to assess the health of the business and mitigate risks associated with stock dips [7] - The Trefis High Quality (HQ) Portfolio, which includes 30 stocks, has consistently outperformed benchmarks like the S&P 500, S&P mid-cap, and Russell 2000, indicating that HQ Portfolio stocks generally deliver superior returns with reduced risk [7]