Why DraftKings Stock Soared Today
Shares of DraftKings (NASDAQ: DKNG) have soared today, up by 11% as of noon EST, after ARK Investment Management started accumulating the stock. This was the first time that ARK has invested in the sports betting specialist.
While most exchange-traded funds are passively managed, ARK operates numerous actively managed funds that regularly buy and sell holdings. ARK has also taken a unique approach of disclosing its daily trading activity, and yesterday's disclosure showed that ARK Next Generation Internet (NYSEMKT: ARKW) scooped up 620,300 shares of DraftKings, which represented approximately 0.5% weighting at the time. The reports do not specify what price the fund manager purchased the stock at, but DraftKings had a daily range of $53.14 to $55.75 yesterday.
Image source: DraftKings.
Source Fool.com
