Mobile esports platform Skillz (NYSE:SKLZ) is on Wall Street's radar, and one of the hottest money managers around, Cathie Wood, has been buying shares of this depressed stock.
Her ARK Next Generation Internet (NYSEMKT:ARKW) exchange traded fund (ETF) has announced it bought another 1.2 million shares of Skillz, bringing the fund's total holdings to almost 6.9 million shares.
Including the shares Wood's ARK Innovation (NYSEMKT:ARKK) owns, the ARK family of ETFs now owns nearly 11 million shares of the competitive gameplay specialist.
Skillz stock has lost nearly two-thirds of its value since peaking at $46 per share in February, but Wood has been buying shares for her ETFs all along.
On Wednesday, her funds added over 5 million shares, with ARK Innovation buying over 4 million and ARK Next Generation Internet picking up 1.2 million.
Despite the large tranches she's bought, Skillz doesn't amount to a large percentage of her holdings: only 1.7% in Next Generation and less than 0.3% in Innovation.
Still, it shows Wood isn't bothered by the dilution that sparked one of Skillz's sell-offs following its announcement it was selling 17 million of its own shares as well as 20 million new shares it planned to offer.
Esports is one of the fastest growing niches, and the potential for betting on competitive play has many believing this could be the hottest ticket around. Numerous companies are going public to capitalize on the opportunity.