We recently compiled a list of the 10 Firms Defy Market’s Bullish Momentum. In this article, we are going to take a look at where DraftKings Inc. (NASDAQ:DKNG) stands against the other stocks.

Wall Street's main indices all finished in the green territory on Wednesday, as investors cheered an unexpectedly slower inflation rate in December.

The Dow Jones jumped by 1.65 percent, while the S&P surged by 1.83 percent. Meanwhile, the Nasdaq Composite index soared 2.45 percent.

Ten companies under mixed sectors bucked an overall positive market sentiment amid a series of negative factors weighing on investor sentiment.

In this article, let’s take a look at the reasons that dragged their shares performance.

To come up with the losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A woman at a betting table paying out customers who won their sports bets.

DraftKings Inc. (NASDAQ:DKNG)

Shares of DraftKings Inc. (NASDAQ:DKNG) fell by 3.2 percent on Wednesday to end at $38.72 apiece following news that the state of Maryland, in a budget report on Wednesday, suggested it would begin implementing significant tax increases on sports betting and gambling revenues.

The budget, presented for the year 2025, included plans to hike sports betting taxes to 30 percent from 15 percent previously, while table game taxes are set to increase to 25 percent from 20 percent at present.

The proposed tax hikes are part of a broader tax reform that aims to make Maryland's tax system "simple, fair, and pro-growth" while also investing in economic growth initiatives.

Maryland’s tax plan also outlines changes such as doubling the standard deduction, consolidating income tax brackets, and introducing new tax rates for higher income levels, in addition to a temporary surcharge on capital gains for households earning above a certain threshold.

Overall DKNG ranks 3rd on our list of Wednesday's losers. While we acknowledge the potential of DKNG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DKNG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

 

Disclosure: None. This article is originally published at Insider Monkey.