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Why DraftKings Inc. (DKNG) Crashed On Monday

We recently published a list of These 10 Stocks Already Sank in June. In this article, we are going to take a look at where DraftKings Inc. (NASDAQ:DKNG) stands against other worst performers on Monday.

DraftKings saw its share prices decline by 5.99 percent on Monday to end at $33.73 apiece following news that Illinois is set to raise its taxes on legal sports wagers to boost its revenues.

Under the state budget set to be approved by Illinois Governor JB Pritzker, it would slap a 25-cent tax on the first 20 million wagers a company takes, and 50 cents for each bet past the threshold. The state was looking to raise more than $36 million in revenues yearly.

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

According to analysts, Illinois’ new state law would cost DraftKings Inc. (NASDAQ:DKNG) some $68 million in additional taxes.

In other news, DraftKings Inc. (NASDAQ:DKNG) is facing a lawsuit filed by a bettor from Iowa over its refusal to pay him worth $14.2 million in purported winnings.

Plaintiff Nicholas Bavas said he studied weather reports to determine that rain would likely shorten the 2024 AT&T Pebble Beach Pro-Am tournament.

As the third round ended and bad weather threatened to cancel the tournament, Bavas placed five bets on DraftKings Inc. (NASDAQ:DKNG), based on how the players were ranked at that point. He picked Wyndham Clark to win the tournament, who was later named the champion.

Overall, DKNG ranks 6th on our list of worst performers on Monday. While we acknowledge the potential of DKNG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DKN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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