DraftKings Inc partnered with DISH Network Corp (DISH): Why has the DKNG stock dropped?

Sport betting company DraftKings Inc (NASDAQ: DKNG) has partnered with satellite provider DISH Network Corp (NASDAQ: DISH). It means expanded market reach for DraftKings, but why did their stock drop 4.13 %, to $ 65.75, after this news?

DraftKingsInc (DKNG) gains access to a large audience thanks to the partnership with DISH Network. Those who subscribe to the DISH Network mobile service and STB service will use DraftKing’s services. Currently, viewers of television services have access to an application that lets them predict sporting events. It’s the first such agreement on the market.

While the news appears very positive at first glance, why has the DKNG stock dropped? The main reason for this is the incomplete integration of services. DISH Network subscribers can see the bids made by DraftKings through their mobile app, but you can’t complete the deal without logging in to the app. An automated text message prompts the user to proceed through their DraftKings account. Additionally, betting is only permitted in those states of the US where it is allowed. DraftKings is unlikely to gain significant new customers because of these barriers.

Despite the importance of this brand presentation, there is potential for significant growth in its business. The company’s share price has increased by more than 300 percent in the past 12 months amid a growing number of users. DraftKings expects to grow its user base by double digits thanks to new types of bets and partnerships with companies with a large audience in terms of user growth.

Shares of DraftKingsInc (DKNG) rose 300.67% since the beginning of the year. The stock price soared 9.07% in the last five trades and up 20.33% in the last 30 trades. The share price has increased 85.94% in the past six months and 25.57% during the previous three months.