He and his fellow cofounders remain optimistic about future upside ahead, however: “Our view is that it’s less specific to our industry. “If we had that same print three months ago, we probably would have gotten a different reaction from the market,” Robins says of the stock’s recent struggles. Shares are down nearly 14% so far in the second quarter. In May, DraftKings reported first-quarter earnings that beat expectations, but investors were somewhat rattled by the company’s increased marketing spend: Although revenue tripled from the year prior, to $312 million, sales and marketing costs for the quarter quadrupled from a year ago, to nearly $230 million.
While DraftKings’ shares soared more than 330% in 2020, the stock has struggled in recent months.
