On Monday, DraftKings (NASDAQ: DKNG) stock plummeted after the financial results report was released just as a pulse of market pressure raced through the tech, internet media, as well as gaming sectors. The DKNG stock lost over 12% in the market trading session today and reached its new 52-week low.

In response to the stock’s recent decline, Wall Street enthusiasts have lowered their price goals for DKNG, but remain optimistic about the long-term outlook.

DKNG stock ratings

Oppenheimer gave an ‘Outperform’ rating and reduced the price target from $32 to $24. The quote mentions: “DKNG raised its ’22 revenue/EBITDA margin outlook on strong top-line trends and improving customer acquisition efficiencies, as the brand benefits from national advertising… We believe competencies in product development and customer acquisition that DKNG utilized to become the daily fantasy sports market leader will allow the company to be a critical player in accelerating the shift in US sports betting from ~ $150B wagered illegally/offshore to licensed domestic operators.”

Needham gave a ‘Buy’ rating and dropped the price target from $32 to $25. The quote stated: “While DKNG increased its organic revenue and adj. EBITDA guides this quarter, investing in the stock still requires patience in our view, as we do not expect the >$800 adj. EBITDA loss to improve to positive until ’24E. We still believe the medium-term unit economics of the business are compelling, but given the increasing focus on profitability by the market, this is being outweighed by the US OSB market still in its infancy (state maturities -1.5 years on average).”

Morgan Stanley provided an ‘Overweight’ rating and set the price target st $31. The official quote said that “DKNG raised its ’22 revenue/EBITDA margin outlook on strong top-line trends and improving customer acquisition efficiencies, as the brand benefits from national advertising.”

DKNG stock

The DKNG stock was down by a huge 12.24% and traded at $11.54 (down by 1.61 points) at 12:51 p.m. EDT in the market trading session today. The market capitalization of the stock stood at $5.05 billion. The share volume traded for the DKNG stock was 21,776,317, inching closer to the average share volume of 26,058,121. Moreover, the stock reached its 52-week low of $11.10.

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