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Bloomberg News is reporting that DraftKings Inc. share price fell the most since March 5 on Tuesday after short seller Hindenburg Research said it was betting against the online gambling company.
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DraftKings, which went public just over a year ago via a reverse merger in April 2020, saw its price plunge as much as 12% Tuesday to $44.65 after the report. The stock trimmed losses to 4.3%, trading at $48.45 at 2:27 p.m. in New York.
Hindenburg disclosed a short position against the stock, meaning it will benefit from any drops in the shares.
The short seller is a frequent critic of popular startups, having previously targeted Nikola, Lordstown Motors, and Clover Health.
“This report is written by someone who is short on DraftKings stock with an incentive to drive down the share price,” the company said in a statement.
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