Jason Robins takes aim at DraftKings short sellers over shareprice drops
DraftKings CEO provokes market with tweets suggesting he is “on a mission” to make sellers regret dumping sportsbook goliath’s stock
DraftKings CEO Jason Robins has fired an opening salvo at short sellers of the firm’s stock, suggesting he is “on a mission” to make shareholders regret selling DraftKings stock.
Taking to Twitter, the outspoken Robins ignited social media with a strongly worded tweet outlining his thoughts on DraftKings stock price, which has fluctuated wildly over the last 12-18 months.
If you sold #DKNG today, just be aware that my team and I are on a mission to make you regret that decision more than any other decision you’ve ever made in your life
— Jason Robins (@JasonDRobins) March 9, 2022
Robins provoked the ire of observers, with many labelling his tweets hypocritical, amid share sales by senior DraftKings executives, while others defended the DraftKings CEO.
Also what about those who sold just 1-3 weeks ago? Are you and your team going to make them regret that decision more than any other decision made in their lives? Does that include insiders who sold? $DKNG pic.twitter.com/YMX2aHN2bh
— Mike Dzikowski (@MikeDzikowski) March 9, 2022
Lfg. This is the type of attitude I like from the management team $DKNG
You sellers will ALL REGRET IT. Mark my words https://t.co/UrIFruyea0
— Major League Stocks (@MajorStocks) March 9, 2022
Others questioned DraftKings’ substantive operational losses, losses which increased to $368.7m during Q4 2021, with marketing costs rising to $588.8m.
I didn't sell. I own over $300K worth of your stock, but boy am I frustrated with the it. I wish you could come up with a strategy to get profitable sooner.
— RealSpartaDude (@dude_sparta) March 9, 2022
According to data provided as part of DraftKings Rule 10b5-1 SEC return, Robins has himself sold more than 2.3 million shares in DraftKings since May 2021, at a profit of $114m.
DraftKings has come under significant investor scrutiny over the last 12 months, with New York-based analysis firm and short seller Hindenburg Research triggering a raft of class action lawsuits after it published a 287-page report into alleged illegal activity by its SB Tech subsidiary.
The sportsbook operator’s conduct in the run up to its SPAC merger deal is also the subject of an SEC investigation, with additional lawsuits being launched into its $18bn Golden Nugget Online Gaming acquisition.
DraftKings market cap value has fluctuated dramatically throughout 2021 and into 2022, with its value dropping from a high of $31.84bn in September 2020 to just $7.27bn on March 10.
Robins recently defended the firm’s strategy at its investor day, suggesting that its earliest five sportsbook states would become profit positive during 2022.
However, his comments fell largely flat with investors, triggering a decline in the firm’s share price, slumps in parallel to a number of igaming and sports betting operators across the US market who have all experienced drops following a decline in investor confidence.
Robins is no stranger to stirring controversy on social media and provoked a Twitter furore after slamming bettors who “manipulated the sports betting ecosystem” in December 2021, comments made in a speech at a Canaccord Genuity Group investor summit.
These comments also caused drops in the firm’s share price.