DraftKings share price rises 10% after ETF invests $37.6 million
DraftKings shares rose 10% on Tuesday as Cathie Wood's ARK Invest Next Generation Internet ETF loaded up on 620,300 shares of the online sports gaming company.
DraftKings holds 0.52% in its ARK Invest portfolio
DraftKings shares rose 10% between February 1 and February 2 after Cathie Wood's ARK Invest Next Generation Internet ETF bought a stake in the US-based sports betting, gaming and fantasy sports operator. The share price on the Nasdaq exchange in New York rose from $54.64 in early trading Monday morning to $60.47 by lunchtime Tuesday after the ETF acquired 620,300 shares in the sports gaming platform.
According to ARK Invest Next Generation Internet ETF Holdings report on February 2 , DraftKings weight in the fund is 0.52% . This share is equivalent to 634,303 shares valued at over $37.6 million . The three largest companies in the ETF are Tesla (9,85%), Teladoc Health (4,10%) and Square (3,86%).
DraftKings will continue to win in 2021
On Monday, Benchmark analyst Mike Hickey maintained a Buy rating on DraftKings stock and raised the target price for the online betting research firm from $60 to $66 . Hickey expects DraftKings to report strong results in its Q4 earnings report , due out Friday, February 26th . Hickey also predicts that the company will increase its market share and revenue, given the ongoing trend of legalized online sports betting in the United States.
DraftKings will also benefit from Google's policy changes that will allow real-money betting and advertising apps in the Google Play store for users in 15 countries , including the US. Android users in the US will gain access to betting and gambling apps in the Play Store from March 1 , Google announced in late January.
DraftKings shares hit an all-time high of $63.78 in October 2020, before news broke that DK's largest shareholder, SBTech founder Shalom Meckenzie, had registered the sale of 8.5 million shares.
Nasdaq analysts are positive about the company's future as more and more states are moving towards allowing mobile betting. In addition, the online betting operator has signed many new deals in recent months and will see many new deals in the future. The Colorado Rockies of Major League Baseball, the Detroit Pistons of the NBA and the Nashville Predators of the NHL, as well as Turner Sports and the Tyson-Jones boxing event are just a small portion of DraftKings' recent partnerships.
The online gambling sector is growing globally, accelerated by pandemic blockchain and increasing internet penetration. With that in mind, Nasdaq analysts expect the company's stock to reach $100 soon.
