According to a holdings report from the actively managed ARK Next Generation Internet ETF, dated February 1, the fund currently holds 620,300 shares of DraftKings, worth some $33.9 million.
The stock represents just 0.49% of the ETFs total holdings, but the move comes at an important time for DraftKings as the company expands its sportsbook offerings and US online gambling regulations cool.
Further, the research firm Benchmark on Monday raised its price target on DraftKings to $66, from $60.
Google also recently revealed changes to its policies that will enable companies to place gambling apps on the Google Play store for users in 15 countries, including the US. The company said that the new rules apply to any developer as long as it completes an application process and is deemed an approved operator by the government within its respective country.
The change will bring DraftKings' app to the Google Play store for the first time in March.
The Boston-based company has been taking advantage of the changing attitudes toward sports gambling over the past few years, growing revenue substantially. In the company's latest SEC filings, it revealed 98% year-over-year revenue growth and pushed its full-year guidance to $560 million from $540 million.
Still, DraftKings has struggled with profitability. The company lost $3.26 per share in 2019, and analysts expect the gambling firm to lose $1.92 per share when they report full-year results for 2020. In the company's most recent quarter, which ended on Sept. 30, 2020, it reported a $0.98 loss per share versus a $0.30 loss for the year-ago period.
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Despite the profitability woes and a lofty valuation of 58-times sales, analysts are mostly bullish on DraftKings. The company boasts 26 "buy" ratings, 8 "neutral" ratings, and just one "sell" ratings from analysts.
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