DraftKings Among ARKK ETF Holdings with Big Upside Potential

Following a unrelenting 2022 inwards which it missed two-thirds of its value, the famed ARK Innovation ETF (NYSEARCA:ARKK) is on the darn inward ahead of time 2023, surging 35.32% since the pop out of the year.

There could be to a greater extent gains inwards stack away for the actively managed interchange traded fund (ETF) because several of the ETF’s holdings currently reside swell at a lower place analysts’ consensus damage targets. That mathematical group includes DraftKings (NASDAQ:DKNG), which is already among 2023’s more scintillating rebound stories.

“CNBC screened for stocks inward the monetary fund that get to a greater extent elbow room to course this year. We looked at companies with at to the lowest degree V analysts natural covering them, and these names all get more than 10% upside in the next 12 months, according to FactSet,” reports the financial intelligence network.

DraftKings is among 9 ARKK components CNBC highlighted that make at to the lowest degree 10% upside congeneric to Wall Street consensus terms forecasts. Entering Monday, DraftKings resided 22.2% infra the ordinary damage direct of $20.33. Shares of the online sportsbook operator closed in(p) higher past 0.47%, extending the stock’s year-to-date put on to 48.81%.

Wall Street Applauds DraftKings Layoffs

Last Wednesday, DraftKings proclaimed it is laying sour 140 employees, or almost 3.5% of its workforce. That follows word that Bally’s (NYSE:BALY) may thinned upwardly to 15% of faculty inwards its interactive unit. While those are low-spirited headlines, some psychoanalyst clap the moves because they show gaming companies are focusing more on profitability in their online businesses.

While unfortunate, we consider these moves as a necessary positively charged to arrive at sustainable economical levels before both divisions turn over profitable,” wrote Truist psychoanalyst Barry Jonas in a recent report.

DraftKings in particular proposition is facing pressure level to release profitable at some tip this twelvemonth –intensity that’s only if amplified with competition Barstool Sportsbook eking out a fourth-quarter benefit and with BetMGM and Caesars Sportsbook likely to hold losing money this year, too. Adding to the force per unit area on DraftKings to spend a penny money is the dot that Fanduel — the largest online sportsbook manipulator inwards the US — was likely profitable or closemouthed to it for all of 2022.

Boston-based DraftKings delivers fourth-quarter earnings write up on Feb 16 and the companion could usage that chance to update analysts and investors on its 2023 revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) outlooks.

ARK Invest Longtime DraftKings Backer

As for Cathie Wood’s ARK Investment Management, the issuer behind the aforementioned ARKK ETF, the strong has long been a friend of DraftKings stock. The gaming company hasn’t been a standalone publicly traded entity for three years, but ARK is already 1 of the largest institutional owners of the shares.

In the $6.02 billion ARKK, DraftKings is the list 15 holding, accounting for 3.39% of the fund’s roster. The Florida-based asset manager also holds shares of DraftKings in the ARK Fintech Innovation ETF (NYSEARCA:ARKF) and the ARK Next Generation Internet ETF (NYSEARCA:ARKW).

ARK is broadly bullish on the online sports wagering industry, projecting that US and Canadian hold will upsurge to $330 billion o'er the next five years.

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