ARK Invest Buys More DraftKings, Genius Sports as Stocks Stumble

Shares of DraftKings (NASDAQ:DKNG) and Genius Sports (NYSE:GENI) are on miserable runs. But at to the lowest degree i well-known investor is using the dips inwards those names to buy more of the downtrodden equities.

Cathy Wood’s ARK Investment Management, which has been a devoted purchaser of both sports wagering equities this year, added to positions inward DraftKings and Genius Sports on Tuesday. The New York-based interchange traded cash in hand (ETFs) issuer bought 313,699 shares of DraftKings yesterday, spell adding 881,741 shares of Genius.

ARK’s purchase inwards Genius came as the inventory suffered through unity of its rack up intraday performances since it separated from a blank-check companionship inwards April. Yesterday, shares of the sports betting information provider plunged to a greater extent than 25 percent after the fellowship reported a wider-than-expected third-quarter loss.

Today, Genius stockpile is down feather another 2.6 percent, as at to the lowest degree quaternion search firms lowered terms targets on the shares. The shares are turned 34.17 percent over the yesteryear week.

ARK Stands by DraftKings, Genius

ARK directed the intact Nov. 23 purchase of Genius carry to the ARK Next Generation ETF (NYSEARCA:ARKW), while all of the fresh bought DraftKings equity was allocated to the ARK Fintech Innovation ETF (NYSEARCA:ARKF).

The $5.51 one million million ARKW now owns 5.07 one thousand thousand Genius shares, significance the stock accounts for 1.08 percent of the fund’s portfolio, according to issuer data. That ETF also holds DraftKings and Skillz (NYSE:SKLZ), another beaten up gaming equity that came public via a merger with a special purpose acquisition fellowship (SPAC).

ARK’s addition of DraftKings carry to ARKF — the fintech ETF — means that monetary fund now owns 2.23 meg shares of the online sportsbook operator, and the buy in is now the keep down 14 holding in the fund, dominating a exercising weight of 2.66 percent.

The ARK Innovation ETF (NYSEARCA:ARKK), the firm’s flagship fund, owns 12.27 gazillion shares of DraftKings and 16.33 1000000 shares of Skillz.

Wood Not Deterred past Declines

As noted above, Genius stockpile is plunging. DraftKings isn’t anything to pen about, either. That public figure throw more than a quarter of its economic value o'er the past tense month.

Still, Wood remains undaunted. She has a long story of patience with growth stocks – her clip business line is often v years or more – and of buying dips inward faltering names inward which she has high up conviction. That could be exactly what’s occurrent with DraftKings and Genius.

I receive real unsettled when I ascertain people marketing at what I live are bargain-basement prices,” Mrs. Henry Wood said inward an question today with CNBC. “Our optimism and confidence have increased inward here, not decreased.”

Those comments were liberal and non specific to DraftKings or Genius Sports.