DraftKings stock jumps around 10% after exchange-traded fund invests $37.6m
Operator’s price target is raised to $66 as Google relaxes RMG restrictions for its app store
DraftKings shares surged 10% between February 1 and February 2 after an influential exchange trading fund (ETF) purchased $37.6m worth of stock in the operator.
The share price on the Nasdaq in New York climbed from $54.64 in early trading on Monday morning to $60.47 by Tuesday lunchtime, after Ark Invest Next Generation Internet bought 634,303 shares in the operator. The stock closed the day at $59.31.
According to a recent holdings report, the DraftKings stock makes up 0.52% of Ark Invest’s portfolio, with Tesla the largest of Ark Invest’s holdings at 9.85%.
As of September 30 2020, Ark Invest managed approximately $30bn in assets after Tesla’s share price rocketed in August.
It also maintains shares in technology giants Zoom, Facebook, Twitter, Spotify, Netflix, and Peloton.
Elsewhere, institutional investor research firm Benchmark raised DraftKings price target to $66 following the news that Google lifted its ban against real-money gambling apps in the US.
The operator’s shares hit an all-time high of $63.78 in October in the wake of a public funding round where DK’s biggest shareholder, SBTech founder Shalom Meckenzie, sold 8.5 million shares.
DraftKings market cap currently sits at $23.23bn, although CEO Jason Robins recently told EGR he believed it could become a company worth more than $100bn.