DraftKings soars on live sports re-starting, then falls on MLB cancellations

Guess we're back to Spelling Bee re-runs... Or Russian ping pong. DraftKings took its fantasy sports app public back in April via SPAC merger (ICYMI: yesterday's SPAC rundown). In May, the sports betting company said it would live-stream sports events through its app. While live sports seemed as far away as an Arby's in a desert, DraftKings stock soared on the hope. Then it soared more when:

• Sports were coming back: (minus the fans). The NBA is restarting play at the Disney bubble, the NHL is set to hit the ice in August, and the MLB took the field on July 23.
• Bets were coming back: DraftKings had its 2nd-best day since March thanks to the MLB return. It was the #1 sport in its sportsbook this weekend (shocker).
• Then COVID struck back: DraftKings stock plunged 8% after the MLB's announcement that two games were being postponed Monday because 12 players and 2 coaches tested positive for coronavirus.

What happens in one MLB team... probably doesn't stay in one MLB team. The MLB cancellations made investors realize just how fragile the whole live events situation is... and how quickly it can go south. Investors got hyped on reopenings, then plunged the stock when foreseeable setbacks emerged.