|DraftKings Jumps as Cathie Wood’s ARK Adds Stock to ETF|
By Connor Smith
Feb. 2, 2021 7:31 pm ET
The logo for DraftKings is displayed on a laptop computerGabby Jones/Bloomberg
DraftKings stock popped on Tuesday after Cathie Wood ‘s ARK Next Generation Internet exchange-traded fund disclosed it added the online sports-betting stock.
As of Feb. 1, the ETF (ticker: ARKW) owned 620,300 DraftKings shares worth about $33.9 million. As Barron’s previously noted, the stock jumped in after-hours trading on Monday despite an absence of company-specific news. ARK Investment’s exchange-traded funds have been hugely popular in recent months. Five of ARK’s actively managed ETFs trounced the broader market in 2020 thanks to bets on disrupters such as Tesla (TSLA). Even plans of a space-themed ETF from ARK Invest sent stocks in the sector rising.
DraftKings stock has soared 238% since going public via a merger with a special purpose acquisition company in April.
Shares were up 8.5% to $59.31 on Tuesday, while the S&P 500 index was up 1.4%.
In a note on Tuesday, Morgan Stanley analyst Thomas Allen wrote that he believes FanDuel and DraftKings continue to lead in app download market share, with DraftKings doing well in new states that have launched online sports betting. He cites preliminary app download data from Sensortower that showed U.S. sports betting app downloads increased 299% year-over-year in January, with DraftKings on FanDuel’s heels with 32% share, compared to the latter’s 34% share of downloads. FanDuel is owned by Flutter Entertainment.