DraftKings is caught between short-seller Hindenburg Research and the Wall Street Bets subReddit. It gapped down sharply on Tuesday.
Despite a strong run-up in 2020, particularly early in the pandemic on the back of lockdowns and stimulus checks, the company has some problems, including a lack of profitability.
Hindenburg was especially harsh in a note issued this week, expressing concern about a Bulgarian betting technology firm that was wrapped into the DraftKings IPO. #DKNG