One of the ARK exchange-traded funds run by ETF star Cathie Wood made a huge purchase on Tuesday. Accordingly this fund bought nearly 1 million shares of DraftKings Inc. (NASDAQ: DKNG) shares on Tuesday, as the price of this ETFs gained over 10% on Tuesday. Note that this ETF is still up over 100% in the last year.
ARK Innovation ETF (NYSEARCA: ARKK) bought 949,200 shares of DraftKings. At Tuesday’s closing price this would have valued this purchase at roughly $59 million. Even though this is a small fraction of the total holdings, every little bit counts. ARKK is up 159% in the last year.
24/7 Wall St. recently reported on DraftKings:
The company became a huge favorite with younger people due to the surge in popularity of fantasy football. DraftKings Inc. (NASDAQ: DKNG) operates as a digital sports entertainment and gaming company. It provides users with daily sports, sports betting and iGaming opportunities. It also is involved in the design and development of sports betting and casino gaming platform software for online and retail sportsbook and casino gaming products.
DraftKings entered the market in April 2020 at a time when most companies were putting off their initial public offerings. The offering was not an IPO in the truest sense because DraftKings came public through a merger with a special purpose acquisition company called Diamond Eagle, but similar rules applied, a practice that has grown exponentially since then.
On the revenue side, DraftKings saw a 98% year-over-year surge to $132.8 million in the latest quarter, reported on November 13. The company raised its full-year 2020 revenue range to $540 million to $560 million, which equates to 25% to 30% annual revenue growth. DraftKings also introduced 2021 revenue guidance of $750 million to $850 million, which equates to 45% year-over-year growth using the midpoints. The company is expected to post fourth-quarter results on Friday.
The Jefferies price target is $67, which is higher than the $62 consensus target. Friday’s last DraftKings stock trade came in at $60.91 per share.
Catherine Wood, the CEO and CIO of ARK Investment Management LLC is a minority and non-voting shareholder of 24/7 Wall St., LLC, owner of 247wallst.com.
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