Why Shares of DraftKings Plunged 8.9% Today

Shares of DraftKings (NASDAQ: DKNG) plunged as much as 8.9% in trading Thursday as a pullback in gambling stocks continued. At 12:50 p.m. EDT shares were still down 4.9% on the day.

The biggest news of the day was that 1.5 million people filed for unemployment last week, worse than analysts were expecting. As that happened, COVID-19 cases were increasing in many southern states that had light outbreaks in the spring. This could lead to a slower economic recovery if people stay home in those areas. If these two negative factors keep people from having money to spend, even on online gambling, it'll be bad for DraftKings business this year as its products are becoming more available.

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Source Fool.com