📈 Cathie Wood Steps Into DraftKings

Cathie Wood and her ARK Invest firm purchased more than 511,000 shares of DraftKings (NASDAQ: DKNG) on Wednesday, worth roughly $19.1 million based on Tuesday’s closing price of $37.40.

350,315 shares added to the ARK Innovation ETF (ARKK)
103,872 shares added to the ARK Next Generation Internet ETF (ARKW)
58,862 shares added to the ARK Fintech Innovation ETF (ARKF)

The move came during a sharp sell-off in sports betting stocks, driven by concerns over prediction market competition.

⚡ Prediction Markets Disrupting Sportsbooks

DraftKings and Flutter Entertainment (FLUT), parent of FanDuel, dropped this week after Kalshi launched parlay-style offerings ahead of Monday Night Football.

Robinhood (HOOD) CEO Vlad Tenev revealed users transacted 4B event contracts in Q3, including elections and sports contests, with 2B in Q3 alone.
DraftKings stock is down ~17% this week, while Flutter slid ~10%.

Analysts see prediction markets like Kalshi and Polymarket as potential long-term disruptors, offering odds that may compete with sportsbooks.

🧐 Analysts Divided on DraftKings Outlook

Northland: Double downgraded $DKNG to underperform, cutting PT to $33 (from $53). Warns prediction markets offer more favorable odds.
Oppenheimer: Cut PT to $55 (from $60), but kept outperform. Sees prediction market threat as overstated. Notes DraftKings saw strong September betting activity.
BMO Capital: Called the pullback a “back-up-the-truck” opportunity. Kept outperform with PT $65, highlighting DraftKings’ strong position to scale.
Needham: Analyst Bernard McTernan said DraftKings & FanDuel have “much better products” in regulated markets, though Kalshi could still thrive in unregulated states.

📉 Stock Performance Snapshot

DraftKings (DKNG): Down ~17% this week, dipped below its 200-day line, lowest since mid-June. Shares rebounded +2.3% early Thursday.
Flutter (FLUT): Down ~10% this week, lowest since mid-June, eased slightly Thursday.
Robinhood (HOOD): Highlighted growth in event contracts, fueling concerns for sportsbooks.