DraftKings Hits A Death Cross Ahead Of Q3 Earnings — Handing Ken Griffin A 25% Loss

DraftKings Inc (NASDAQ:DKNG) just hit a Death Cross — and its billionaire backers are feeling the chill.

DraftKings stock has tumbled nearly 20% in a month, just as the sports-betting giant prepares to report its third-quarter earnings on Thursday after the close. For investors like Ken Griffin and Cliff Asness, who loaded up on the stock earlier this year, the timing couldn't be worse.

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The Billionaires' Bad Beat

Citadel's Griffin added big to his DraftKings position in the second quarter, now holding 8.07 million shares worth $346 million at an average price of $38.53 — a level that leaves him down roughly 25% at current prices. AQR's Cliff Asness isn't faring much better: he boosted his stake by more than 50%, to 7.15 million shares valued at $306 million, at an average cost of $36.30.

With the stock now trading near $28.11, just above its 52-week low of $28.04, both hedge fund titans are deep in the red. And as DraftKings stumbles into earnings, traders are bracing for volatility: Wall Street expects an EPS loss of 40 cents per share on $1.23 billion in revenue.

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DKNG Stock Makes A Death Cross

Chart created using Benzinga Pro

The real gut punch is technical. DraftKings' 50-day moving average ($38.63) has fallen below its 200-day ($39.60) — a textbook Death Cross that signals sustained bearish momentum.

The MACD (moving average convergence/divergence) (-2.52) is negative, the RSI (relative strength index) (23.23) shows the stock is deeply oversold, and Bollinger Bands are tightening between $37.03 and $28.27, hinting at a big move coming.

Can The House Still Win?

For a company built on betting, this is shaping up like a classic gambler's paradox: the fundamentals may improve, but the odds look rough in the short term.

If Thursday's results disappoint, the stock could tumble into new lows. But if the guidance surprises, that oversold setup might just make DraftKings the market's most dramatic rebound trade.

Either way, one thing's certain — Griffin's sitting on a loss, and DraftKings just dealt the chart a Death Cross right before showtime.

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