The fund, run by star inventory picker Cathie Wooden, snapped up 870,299 shares within the fantasy sports activities operator after its inventory was clobbered on Tuesday following a report from Hindenberg Analysis
ARK Make investments, the fund run by star inventory picker Cathie Wooden, swooped at a possibility to ‘purchase the dip’ in shares of DraftKings Inc (NASDAQ:DKNG) after the fantasy sports activities agency noticed its inventory worth knocked by a broadside from quick vendor Hindenburg Analysis.
The agency discovered itself below stress after Hindenburg launched a report on Tuesday stating that it had taken a brief place towards the corporate after an investigation into the supply of revenues of its subsidiary SBTech. The corporate has denied the content material inside the report.
READ: The power and influence of ARK Innovation ETF and Cathie Wood’s range of active ETFs
The report additionally went on to say that a number of business consultants and opponents interviewed by Hindenburg had queried some facets of DraftKing’s enterprise mannequin and the loyalty of its clients.
Hindenburg’s broadside despatched DraftKings’ shares sliding, with the corporate ending Tuesday’s session 4.2% decrease at US$48.51.
Nevertheless, ARK pounced on the probability to snap up inventory within the agency at a reduction worth, shopping for 870,299 shares on Tuesday throughout DraftKing’s droop.
On Wednesday, it appeared as if ARK’s wager had supplied a confidence enhance for the shares, which had been up 0.7% at US$48.85 in pre-market buying and selling.
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