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Why DraftKings Stock Jumped Higher This Week

By Daniel Sparks – Aug 27, 2021 at 4:14PM

Key Points

  • Cathie Wood's ARK Invest loaded up on the stock.
  • The company's popular Daily Fantasy Sports product is coming to Arizona this weekend.
  • Shares of the digital sports-betting company surged this week, beating the market.

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Cathie Wood's bet on the stock, a bullish week for tech, and more had investors gobbling up shares of the digital sports-betting specialist.

What happened

Shares of digital sports betting company DraftKings (DKNG -4.23%) surged higher this week, rising about 15%. The stock's gain has been driven by several things, including news that famed investor Cathie Wood bought DraftKings shares via ARK Invest, upbeat momentum for tech stocks, and an announcement that the company was bringing its fantasy sports product to Arizona this weekend.

A man playing a digital sports betting game with his sportphone.

Image source: Getty Images.

So what

Shares of DraftKings popped midweek, following news that Wood's ARK Invest bought 1.1 million shares of the digital sports betting specialist's stock on Tuesday. Bullishness for the stock continued in the second half of the week amid optimism in the market -- particularly for tech stocks.

Helping the stock on Friday was news that DraftKings was bringing its Daily Fantasy Sports product to Arizona on Saturday, pending regulatory approval. 

"There is no better time of the year to launch our leading daily fantasy sports app than ahead of the NFL season," said DraftKings co-founder Matt Kalish in a press release Friday morning. 

Now what

Arizona will mark the 44th state where the company will offer its DraftKings Daily Fantasy Sports product, highlighting the growing adoption of sports betting around the country.

"We're excited for the opportunity to provide Arizona sports fans with the thrill of having some skin in the game as we head into what we expect to be the busiest time of the year for our company," said Kalish.

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

DraftKings Inc. Stock Quote
DraftKings Inc.
DKNG
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