- Wooden’s agency is a longtime DraftKings investor
- She purchased over 500K shares of the sports activities betting inventory throughout three of her ETFs
- Inventory is on an eight-day shedding streak
DraftKings (NASDAQ: DKNG) is on a now well-documented slide. If it settles decrease at the moment, its shedding streak will attain eight days. The inventory is off virtually 19% over the previous week and practically 27% over the previous month, however that’s not stopping a well-known title from shopping for the dip.
ARK Make investments founder Cathie Wooden. She purchased greater than 500K shares of DraftKings inventory. (Picture: Getty Photographs)
Cathie Wooden’s ARK Funding Administration, a longtime DraftKings shareholder, purchased 511,049 shares of the gaming inventory on Wednesday, sprinkling that buy throughout three of its actively managed exchange-traded funds (ETFs).
With the addition of 350,315 DraftKings shares to the ARK Innovation ETF (NYSEARCA: ARKK) — the agency’s flagship ETF —the gaming inventory is now the Thirty seventh-largest element within the $7.17 billion ETF. ARKK, ARK Make investments’s greatest ETF by belongings below administration, is up 55.84% yr so far.
DraftKings is the one gaming-related title within the ARKK portfolio, however the ETF counts Robinhood Markets (NASDAQ: HOOD) amongst its high 10 holdings. By means of its burgeoning prediction markets publicity, Robinhood is changing into a thorn within the facet of DraftKings and different sports activities betting shares.
Talking of DraftKings and Prediction Markets…
A lot of the current weak spot in sports activities betting shares, together with DraftKings, has been attributed to exploding quantity on predictions and Kalshi – one of many leaders in that area – providing soccer parlays. Robinhood, a Kalshi associate, is a serious participant in that area as the corporate stated earlier this week it has dealt with greater than 4 billion occasion contracts, with greater than half of that whole processed within the simply concluded third quarter.
There’s extra to the story for DraftKings and its opponents. Some analysts imagine the prediction market quantity thesis is overblown as a result of it’s doable turnover on these exchanges is being double-counted, thus inflating numbers which might be the equal of sports activities betting deal with.
Likewise, some sell-side analysts say the actual perpetrator behind the late September slide in sports activities betting shares had nothing to do with prediction markets. Relatively, the actual drawback is customer-friendly outcomes on NFL video games.
That state of affairs was so palpable in September – a month that normally accounts for half of operators’ third-quarter deal with – that some analysts lowered 2025 and 2026 earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) estimates on DraftKings and FanDuel proprietor Flutter Leisure (NYSE: FLUT).
Different ARK ETFs Including DraftKings Inventory
Getting again to ARK Make investments, it added 103,872 shares of DraftKings to the ARK Subsequent Era Web ETF (NYSEARCA: ARKW), making the inventory that ETF’s Thirty first-largest holding.
The asset supervisor additionally added 56,862 shares of the gaming inventory to the ARK Fintech Innovation ETF (NYSE: ARKF), making DraftKings the quantity 20 holding in that fund.
Vanguard and BlackRock are the most important fund house owners of DraftKings, with that duo combining to personal 14.06% of the betting inventory as of the tip of the second quarter.
