Zillow, DraftKings, iHeartMedia, Lincoln Educational, and Hilton Grand Vacations Shares Are Falling, What You Need To Know

What Happened?

A number of stocks fell in the afternoon session after a confluence of negative economic data pointed to a weak economy. 

The latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations rose, while their outlook on the labor market deteriorated. Consumers expressed greater concern about potential job losses and expected lower earnings growth, factors that directly impact discretionary spending. Adding to the unease, Chief Economist at Moody’s Analytics, Mark Zandi, warned that 22 states demonstrated clear signs of a recession, placing the broader U.S. economy in a precarious position. The U.S. government shutdown further dampened sentiment, threatening to weigh on incomes and purchasing power.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Real Estate Services company Zillow (NASDAQ:ZG) fell 2.9%. Is now the time to buy Zillow? Access our full analysis report here, it’s free for active Edge members.
• Gaming Solutions company DraftKings (NASDAQ:DKNG) fell 5.4%. Is now the time to buy DraftKings? Access our full analysis report here, it’s free for active Edge members.
• Broadcasting company iHeartMedia (NASDAQ:IHRT) fell 3.4%. Is now the time to buy iHeartMedia? Access our full analysis report here, it’s free for active Edge members.
• Education Services company Lincoln Educational (NASDAQ:LINC) fell 5%. Is now the time to buy Lincoln Educational? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Hilton Grand Vacations (NYSE:HGV) fell 3.6%. Is now the time to buy Hilton Grand Vacations? Access our full analysis report here, it’s free for active Edge members.

Zooming In On DraftKings (DKNG)

DraftKings’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 11.2% as reports of rising competition from prediction platforms Kalshi and Robinhood sparked investor concern. Kalshi, an emerging prediction market, shattered its trading records over the weekend, pulling in over $275 million on a Sunday fueled by football games. This significant activity signaled its growing influence in the sports betting sector.

DraftKings is down 8.3% since the beginning of the year, and at $33.27 per share, it is trading 37.8% below its 52-week high of $53.49 from February 2025. Investors who bought $1,000 worth of DraftKings’s shares 5 years ago would now be looking at an investment worth $623.76.

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