Monday's Headlines: DraftKings Plummets 21%
Morning folks! The answer to Friday’s anagram was General Electric.
See if you can figure out today’s puzzle, and let us know on Twitter @MyWallStHQ if you think you’ve got it.
Hint: What does DraftKings do?
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Cognex (CGNX) +6.6%
Chuy's (CHUY) +5.3%
Ford Motor Company (F) +2.9%
Trupanion (TRUP) +2.4%
Texas Roadhouse (TXRH) +2.1%
Moving Down ⬇️
Roku Inc. (ROKU) -22.3%
DraftKings (DKNG) -21.6%
Redfin (RDFN) -20.2%
MercadoLibre (MELI) -8.2%
Teladoc (TDOC) -7.8%
1. Despite a strong quarter from DraftKings (DKNG) in Q4, widening losses have sent its share price plummeting. The sports betting leader reported a loss per share of $0.35 v.s. an expected loss of $0.81, while revenue came in at $473 million v.s. $445 million estimated. So far so good, until the company announced an adjusted EBITDA loss for 2022 between $825 million and $925 million, much higher than the previously expected loss of $572.7 million. There is some hope though in the fact that DraftKings is expecting to see a record windfall this year via the launch of mobile sports betting in New York and Louisiana, the former of which represents a massive growth opportunity. Read the official press release here.
2. Another day, another investigation into Tesla’s (TSLA) alleged product safety issues. Elon Musk’s old pals, the National Highway Traffic Safety Administration (NHTSA), are looking into the infamous “phantom braking” issue which is estimated to affect 416,000 Tesla Model 3 and Model Y vehicles from 2021 and 2022. This latest complaint, which refers to the act of cars braking suddenly at high speeds when in ‘Autopilot’, is piled onto two other active NHTSA investigations at the moment, which are looking into Autopilot and Passenger Play. Investors need not worry about such buzzword headlines just yet though, as such events are commonplace among manufacturers, and do not hinder our long-term buy-and-hold view of Tesla. Read more here.
3. Thought that Spotify’s (SPOT) Joe Rogan problems were old news? I’m afraid not! On Friday, shares in the world’s largest music streaming and podcast service fell 5% on the mere momentary lapse in the availability of the ‘Joe Rogan Experience’ podcast on its platform — it was back online within the hour. This comes following backlash the company has experienced after Rogan, who signed a reported $200-million deal with Spotify in 2020, aired controversial COVID-19 views on his show and drew protests from artists Neil Young, Joni Mitchell and India Arie. So, Spotify has now come under fire for both hosting Rogan, and momentarily not having his show available. Investors may want to keep an eye on this “damned if they do…” situation and hope it blows over soon. Read the full report here.
Get this week’s full earnings calendar here.