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June 16, 2021
The value of individual shares in American online sportsbook and daily fantasy sports operator DraftKings Incorporated reportedly fell by 4.2% yesterday following news that a key specialist had recommended taking up a short position on its stock.
According to a Tuesday report from American television broadcaster CNBC, the advice from Hindenburg Research LLC came after the investments research enterprise published a report in which it questioned the sportsbetting giant’s promotional spend and future potential. The analyst purportedly also threw doubt on Nasdaq-listed DraftKings Incorporated’s valuation when compared to rivals such as the soon-to-go-public FanDual Group before alleging that the company may have had ties to questionable gambling practices.