Historically, September has been a tough month for the stock market, and this year proved to be no exception. With the tech-heavy NASDAQ Composite down 10.4% in the past month, the road ahead looks grim. On top of it…
the major U.S. equity benchmarks were down between 8% and 11% in September.
The Fed’s successive rate hikes weigh particularly on the technology sector. This sector has been on a downtrend lately as investors head to more defensive assets to deal with higher interest rates to get ahead of a possible recession.
Moreover, as the largest economies – the United States, China, and the euro area – have been slowing sharply, the World Bank has stated that the world may be edging toward a global recession. World Bank President David Malpass, said, “Global growth is slowing sharply, with further slowing likely as more countries fall into recession.”
Amid this backdrop, it might be best to avoid weak NASDAQ stocks DraftKings Inc. (DKNG) and Affirm Holdings, Inc. (AFRM). These stocks have been hit hard this year and might continue their downward trend.
DraftKings Inc. (DKNG)
DKNG is a digital sports entertainment and gaming company that offers multi-channel sports betting and gaming technologies. The company operates through two segments: Business-to-Consumer and Business-to-Business.
For the fiscal second quarter that ended June 30, 2022, DKNG’s operating expenses increased 7% year-over-year to $462.34 million. Its adjusted EBITDA declined 24% year-over-year to a negative $118.13 million. Also, its net loss and loss per share came in at $217.10 million and $0.50, respectively.
Analysts expect DKNG’s loss per share for fiscal 2022 ending December to come in at $3.19. Moreover, the company has missed the consensus EPS estimates in three of the trailing four quarters.
DKNG has slumped 66.1% over the past year to close the last trading session at $16.70. The stock has fallen 39.2% year-to-date.
DKNG’s POWR Ratings are consistent with this…
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