DraftKings (DKNG) stock is down 3% after the online sports book reported second-quarter financial results that fell short of Wall Street’s expectations.
The Boston-based company reported an earnings per share (EPS) loss of $0.14 U.S., which was below Wall Street’s estimate for a $0.02 U.S. profit.
DraftKings also announced $1.44 billion U.S. in revenue, a 4.6% year-over-year decline and short of the $1.51 billion U.S. forecast by analysts.
The poor results come despite betting on big recent sports events such as the FIFA World Cup NBA Finals that drew lots of wagers from fans.
Management at DraftKings said they signed up new bettors during the World Cup but that a greater-than-expected number of people made winning bets, weighing on its earnings.
DraftKings also faces increased competition from prediction markets such as Kalshi and Polymarket.
The company has responded by launching its own prediction market that now has more than 600,000 customers.
Despite the poor second-quarter results, DraftKings said that it is maintaining its full-year guidance that calls for revenue of between $6.5 billion U.S. and $6.9 billion U.S.
Prior to today (Aug. 7), DKNG stock had declined 50% over the past 12 months to trade at $22.17 U.S. per share.
