Sports betting is breathing new life into the Paris 2024 Olympics
The widespread legalization of sports betting is breathing new life into the Paris 2024 Olympics. Earnings season is shining a light on the sector as well, with DraftKings Inc (NASDAQ:DKNG) fresh off the confessional, and competitor PENN Entertainment Inc (NASDAQ:PENN) set to announce its own quarterly results before the open tomorrow.
DKNG was last seen 0.8% higher to trade at $31.64, enjoying some broader-market tailwinds after the company on Monday reported a surprise profit for the second quarter, while revenue missed the mark. In the aftermath, shares gapped to their lowest level this year, and attracted no fewer than 13 price-target cuts, including one from Piper Sandler to $45 from $50. DraftKings stock shed 25.6% in the last six months.
PENN is also higher, last seen up 0.5% to trade at $17.56. The equity snapped a three-day losing streak in the previous session, but carries a 33.3% year-to-date deficit, with its most recent major rally attempt coming in short of the $21.50 level.
PENN Entertainment stock finished five of its last eight post-earnings sessions lower, including drops of 8.8% and 13.8%, respectively, after its May and February reports. The shares averaged a 9.2% swing regardless of direction in the past two years, but this time the options pits are pricing in a much larger move of 15.3%.