DraftKings Share Price Rises by 10% After ETF Invests $37.6M

DraftKings’ stock went up 10% on Tuesday as Cathie Wood’s ARK Invest Next Generation Internet ETF loaded up 620,300 shares in the online sports gambling company.

DraftKings Features 0.52% in ARK Invest’s Portfolio

DraftKings’ stock jumped by 10% between 1 February and 2 February after Cathie Wood’s ARK Invest Next Generation Internet ETF purchased shares in the US sports betting, igaming and daily fantasy sports operator. The share price on the Nasdaq in New York was up from $54.64 in early trading on Monday morning to $60.47 by Tuesday lunchtime after the ETF acquired 620,300 shares in the sports gambling platform.

According to a holdings report of ARK Invest Next Generation Internet ETF, dated 2 February, DraftKings’ weight in the fund amounts to 0.52%. This piece corresponds to 634,303 shares worth more than $37.6 million. The top three companies in the ETF are Tesla (9.85%), Teladoc Health (4.10%) and Square (3.86%).

DraftKings Set to Keep Winning in 2021

On Monday, Benchmark analyst Mike Hickey kept a buy rating on DraftKings’ shares and increased the research firm’s price target on the online betting company from $60 to $66. Hickey expects DraftKings to announce strong performance in its Q4 report, which is to be published on Friday, February 26. Hickey also anticipates the company to increase its market share and revenue given the ongoing trend of online sports betting legalization across the USA.

DraftKings will also benefit from the changes to Google’s policies that will allow real-money betting apps and ads on the Google Play store for users in 15 countries, including the USA. Android users in the USA will gain access to betting and gambling apps through the Play Store as of March 1, Google announced at the end of January.

DraftKings’ shares reached a record high of $63.78 in October 2020 before news that DK’s biggest shareholder, SBTech founder Shalom Meckenzie registered to sell 8.5 million shares. 

Nasdaq analysts have a positive outlook on the company’s future as more and more states move towards allowing mobile betting. Furthermore, the online betting operator has signed multiple new deals in the past months and will see plenty of new agreements in the future. The Major League Baseball’s Colorado Rockies, the NBA’s Detroit Pistons and the NHL’s Nashville Predators, as well as Turner Sports and the Tyson-Jones boxing event are only a small part of DraftKings’ recent partnerships.

The online gambling industry is rising on a global scale accelerated by the pandemic lockdowns and the increasing Internet penetration. With this in mind, Nasdaq analysts expect the company’s stock to reach $100 soon.

Leave a Reply

Your email address will not be published. Required fields are marked *