Shortly after the start of the NFL regular season, a bevy of sports betting-related stocks experienced a bounce assuaging concerns among gaming investors about whether top industry names were ready to break out of the doldrums.
But with little sign that inflation is abating, stocks of leading companies in the sector moved lower in September, extending deep losses from earlier in the year. Three prominent companies — DraftKings, Flutter Entertainment, and MGM Resorts — fell several points on the month as broad macroeconomic factors outweighed any momentum from an encouraging start to the NFL season. More disconcertingly, some companies that had exhibited signs of emerging out of a bear market retreated again in the final weeks of the month.
DraftKings, for instance, closed September at $15.14 a share. It was down only fractionally on the month, but a late swoon sent it tumbling nearly 24% from its monthly high. While DraftKings is not in danger of testing 52-week lows of $9.77, it is still far below 12-month highs around $50.
U.S. equities have struggled over the past six months, with the leading indices down about 25% from their spring peak. Last week, Goldman Sachs’ Sentiment Indicator posted a negative reading for the 31st straight week, approaching a record for consecutive weeks in negative territory.
Commented on $US12M $SP500 $SPY – Goldman Sachs Sentiment Indicator comes in negative for a near-record 31st straight week. https://t.co/Ge2kyHj9Yd