Last week, along with the market retracement, shares of online sports betting company DraftKings (DKNG) dropped by 20%. The plunge cannot detract from the fact that since going public through a reverse merger in April, the stock has still outperformed the market considerably – up by over 70% (and by 210% since the turn of the year including the period prior to the reverse merger when trading as Diamond Eagle).Some company insiders took advantage of the rally by unloading their shares last week. A recent SEC filing showed that DraftKings founder and other top brass offloaded $596 million worth of shares on June 23. Selling after a massive rally makes sense, but the extent of the offloading is curious, nonetheless.However, Rosenblatt analyst Bernie McTernan dismisses the short-term noise and implores investors to “own shares for the long-term bull case.”“As the gambling industry in the US is emerging, we believe online players...
(Bloomberg) -- Wells Fargo & Co. plans to cut its dividend, breaking with all of the biggest Wall Street banks, after the Federal Reserve last week set new restrictions on the payouts.“There remains great uncertainty in the path of the economic recovery and though it’s difficult to accurately predict the ultimate impact on our credit portfolio, our economic assumptions have changed significantly since last quarter,” Chief Executive Officer Charlie Scharf said Monday in a statement.JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley left their third-quarter payouts unchanged, according to statements from those banks.A reduction by Wells Fargo was widely expected after the Fed said it would restrict payouts using a formula based on earnings, which have plunged at the San Francisco-based bank in recent quarters partly on legal costs tied to multiple scandals. The bank has spent almost four years struggling to...
(Bloomberg) -- Boeing Co. and the U.S. Federal Aviation Administration began a series of long-awaited flights to test whether the revamped 737 Max is safe following two deadly crashes, and investors cheered the rare good news for a planemaker mired in crisis.A Max 7 flight-test aircraft concluded the first of three planned days of testing, landing at Boeing Field at about 2:16 p.m. local time Monday, with an FAA pilot sharing the controls with a crew member from the company. Flight enthusiasts around the world followed in real time as the aircraft flew over central Washington and performed maneuvers such as stalls, based on airspeed and altitude data on FlightRadar24.The so-called certification flight is a milestone toward ending a grounding imposed worldwide in March 2019 after the two crashes of Boeing’s best-selling model killed 346 people. The FAA plans to put the jet, bristling with monitoring equipment, through a rigorous examination,...
