ARK Pares Stake in Slumping Skillz Stock
Mobile games developer Skillz Inc. (NYSE:SKLZ) is probing new lows today. That’s as stocks sag and as marketplace participants damage inward the fact that a major investor rock-bottom its wager inward the gaming name.
On Tuesday, Cathie Wood’s ARK Investment Management dumped 952,252 shares of Skillz from the ARK Innovation ETF (NYSEARCA:ARKK) — the issuer’s largest exchange-traded fund. This isn’t the first of all clip the New York-based money manager pared its view in Skillz, but it is the firm’s biggest cut-rate sale of the buy in since it began edifice a posture inwards the name earlier this year.
Wood’s unwavering is an dynamic manager, import it’s always purchasing and merchandising various stocks and altering positions inward its ETFs, including ARKK. Still, the monetary fund issuer’s sales event of Skillz stock up could lift some eyebrows, because it comes as the gaming name is mired inward a lengthy falloff that’s seen it molt 56.55 percent year-to-date, and 81.47 percent from its Feb highs.
Following Tuesday’s sale, ARK owns 10.94 one thousand thousand shares of Skillz in ARKK. The monetary fund patronise also holds nearly Captain Hicks meg Skillz shares inwards the ARK Next Generation ETF (NYSEARCA:ARKW).
Wild Year for Skillz Stock
San Francisco-based Skillz became a standalone public troupe finally December next a merger with a special design acquisition companion (SPAC).
Since then, it’s been an eventful ride for the gaming company. Investors are taking de-SPACed companies to task for easygoing sell terms for ahead of time investors and lack of profitability. Specific to Skillz, the accompany is long-suffering a spate of bearish commentary as at least tercet unforesightful sellers published overtly negative research on the unbendable before this year.
One of those reports claims Skillz overstates its development opportunities, patch another says the troupe may follow engaging in accounting system chicanery. Previously, ARK defended the keep company against the short-sellers, calling some of the explore misguided.
Today, 20.52 percent of Skillz shares owing(p) are sold short, and the gillyflower late generated some bombilation as i potentially ripe for a myopic squeeze. But that scenario has yet to materialize.
ARK Still Fond of Gaming Equities
While ARK rock-bottom its post in Skillz stock, the ETF issuer remains bullish on some other gaming equities, videlicet DraftKings (NASDAQ:DKNG) and Genius Sports (NYSE:GENI).
Wood’s steadfastly recently added to positions inward the online sportsbook operator and the provider of sports wagering data.
DraftKings is a holding inwards the aforementioned ARKK and ARKW, as fountainhead as the ARK Fintech Innovation ETF (NYSEARCA:ARKF). Genius Sports is a factor inward the cyberspace ETF. ARK is I of the largest institutional investors inwards both gaming equities.