DraftKings share price jumps 10% after exchange-traded fund invests $37.6m
Cathie Wood’s $30bn asset management fund adds DraftKings stock to portfolio including Tesla, Netflix and Zoom
DraftKings shares surged 10% between 1 February and 2 February after an influential exchange trading fund (ETF) purchased $37.6m (£27.6m) worth of stock in the US sports betting, igaming and DFS operator.
The share price on the Nasdaq in New York climbed from $54.64 in early trading on Monday morning to $60.47 by Tuesday lunchtime, after Ark Invest Next Generation Internet bought 634,303 shares in the business. The stock closed the day at $59.31.
According to a recent holdings report, the DraftKings stock makes up 0.52% of Ark Invest’s portfolio, with Tesla the largest of Ark Invest’s holdings at 9.85%.
Ark was founded by CEO Cathie Wood, who was named the best stock picker of 2020 by Bloomberg News editor-in-chief emeritus Matthew Winkler.
As of 30 September 2020, Ark Invest managed approximately $30bn in assets after Tesla’s share price rocketed in August.
It also maintains shares in technology giants Zoom, Facebook, Twitter, Spotify, Netflix and Peloton.
Elsewhere, institutional investor research firm Benchmark raised DraftKings price target to $66 following the news that Google lifted its ban against real-money gambling apps in the US.
The operator’s shares hit an all-time high of $63.78 in October 2020 in the wake of a public funding round where DK’s biggest shareholder, SBTech founder Shalom Meckenzie, sold 8.5 million shares.
DraftKings market cap currently sits at $23.23bn, although CEO Jason Robins recently told EGR he believed it could become a company worth more than $100bn.