What happened
DraftKings (DKNG -0.87%) stock jumped more than 5% Wednesday morning on word that famed technology investor Cathie Wood added shares of the online fantasy sports and gambling company yesterday. As of 11 a.m. EDT, shares remain near the day's high, up 4.9%.
So what
Wood bought over $60 million worth of DraftKings shares yesterday, based on the stock's closing price of $56.47 per share. Wood added over 1 million shares total to three of the exchange-traded funds (ETFs) she manages.
Image source: Getty Images.
Now what
Wood added DraftKings shares in each of the three funds where she already held shares. With ARK Innovation (ARKK 0.07%), ARK Fintech Innovation (ARKF -1.67%), and ARK Next Generation Internet (ARKW -0.56%) ETFs, Wood now holds about $846 million worth of DraftKings shares.
While the investor publishes the daily trades made in the funds she manages, there isn't always a clear explanation of what prompts those trades. DraftKings did announce yesterday that it has entered into a multiyear deal to bring microbetting to its app. DraftKings said in the announcement that the deal with Simplebet "will allow DraftKings customers to engage even further with the sports they love by wagering, among other things, play-by-play, throw-by-throw and pitch-by-pitch throughout a sporting event."
Investors cheered the move to add further engagement to the DraftKings platform, with shares jumping 6% yesterday. Today's trading is keeping that momentum going, and having Cathie Wood adding shares likely gives investors another level of confidence.
