Tuesday’s Headlines: Is DraftKings In Trouble?

Tuesday’s Headlines: Is DraftKings In Trouble?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Facebook (FB) +2.8%

Twitter (TWTR) +2.7%

Ctrip (TCOM) +2.4%

Activision Blizzard (ATVI) +1.8%

Coca-Cola (KO) +1.5%

Moving Down ⬇️

The Trade Desk (TTD) -8.7%

DraftKings (DKNG) -8.5%

GoPro (GPRO) -6.3%

Zillow (Z) -6.0%

Eventbrite (EB) -5.4%

1. DraftKings (DKNG) investors are cashing in their bets on the stock as concerns of whether online betting will be legalized in New York emerge. A report from Deutsche Bank, which stated that the future of online sports betting in New York was "hanging by a thread", sent DraftKings shares tumbling 8.5% yesterday. Comments from New York politicians have recently turned pessimistic surrounding the prospects of legalizing online betting in the state, which DraftKings was hoping to make its biggest market. There was more bad news for the company in Georgia, as the state removed the sports betting bill from the floor’s calendar. Read the full story here.

2. Tech titans Facebook (FB) and Alphabet (GOOG) are both funding two new transpacific subsea cables which will link Singapore to the western coast of the U.S. The aim of the project is to improve internet infrastructure in the Asia-Pacific region and Facebook says that the pair of cables will expand capacity across the ocean by 70%. The Echo subsea cable will link Singapore to the U.S., stopping at Indonesia and Guam en route to California and is expected to be operational by 2023. Besides collaborating on Echo, Facebook is also supporting another connection called Bifrost. This link will connect Singapore, Indonesia, the Philippines, and Guam to the west coast of the U.S. over a span of 9,300 miles and should be running by 2024. Check out the full story here

3. The problems are stacking up for Tesla (TSLA) with the EV maker now coming under fire for double charging some of its customers. Last week, a Californian resident noticed that he had a duplicate charge after buying his brand-new Tesla and said that he was given the runaround when he sought a refund. Since then, other affected users have come forward but Tesla has not yet commented on how many buyers were charged incorrectly. On top of all the other recent concerns for Tesla, now there’s also going to be more competition in the U.S. EV market. Yesterday, Volkswagen (accidentally) announced the new name for its U.S. operations, ‘Voltswagen of America’, emphasizing the automaker’s electric vehicle efforts. See more here.