{"id":369,"date":"2021-06-19T19:30:23","date_gmt":"2021-06-19T16:30:23","guid":{"rendered":"https:\/\/xxbet-company.com\/draftkings-defended-by-analysts-woods-ark-invest-following-hindenburg-short-report\/"},"modified":"2021-06-19T19:30:23","modified_gmt":"2021-06-19T16:30:23","slug":"draftkings-defended-by-analysts-woods-ark-invest-following-hindenburg-short-report","status":"publish","type":"post","link":"https:\/\/xxbet-company.com\/es\/draftkings-defended-by-analysts-woods-ark-invest-following-hindenburg-short-report\/","title":{"rendered":"DraftKings Defended by Analysts, Wood\u2019s ARK Invest Following Hindenburg Short Report"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_34 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Tabla de contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1'><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/xxbet-company.com\/es\/draftkings-defended-by-analysts-woods-ark-invest-following-hindenburg-short-report\/#Woods_ARK_Buys_the_Dip_in_DraftKings_Stock\" title=\"Wood\u2019s ARK Buys the Dip in DraftKings Stock\">Wood\u2019s ARK Buys the Dip in DraftKings Stock<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/xxbet-company.com\/es\/draftkings-defended-by-analysts-woods-ark-invest-following-hindenburg-short-report\/#Analysts_Chime_in_Too\" title=\"Analysts Chime in, Too\">Analysts Chime in, Too<\/a><\/li><\/ul><\/nav><\/div>\n<p>A day after slumping following publication of a bearish report by Hindenburg Research, DraftKings stock (NASDAQ:DKNG) is rebounding modestly Wednesday. Several analysts are defending the sportsbook operator, along with the support of a well-known investor.<\/p>\n<figure aria-describedby=\"caption-attachment-176571\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" class=\"wp-image-176571 lazyload\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-142x107.jpg?x38396\" data-src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-142x107.jpg?x38396\" alt=\"DraftKings stock\" width=\"1200\" height=\"900\" data-srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-142x107.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-1024x768.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-768x576.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood.jpg 1136w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" data- title=\"\"><img loading=\"lazy\" class=\"wp-image-176571\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-142x107.jpg?x38396\" alt=\"DraftKings stock\" width=\"1200\" height=\"900\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-142x107.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-1024x768.jpg 1024w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood-768x576.jpg 768w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/06\/wood.jpg 1136w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" title=\"\"><figcaption class=\"text-description\">ARK Investor founder Cathie Wood, seen above. Her firm bought more DraftKings stock following release of a bearish research report. (Image: <em>Business Insider<\/em>)<\/figcaption><\/figure>\n<p>On Tuesday, shares of DraftKings finished lower by 4.1 percent \u2014 though that was well above the lows of the day \u2014 after short seller Hindenburg <a href=\"https:\/\/www.casino.org\/news\/hindenburg-claims-draftkings-sbtech-biz-involved-in-illegal-gambling\/\" rel=\"nofollow noopener\" target=\"_blank\">issued a scathing report<\/a>. It accused SBTech, a unit of the sports wagering company, of operating in markets where sports betting is prohibited, money laundering, and having links to organized crime.<\/p>\n<p>Hindenburg also points out SBTech founder <a href=\"https:\/\/www.casino.org\/news\/draftkings-director-shalom-meckenzie-buys-cryptopunk-7523-nft\/\" rel=\"nofollow noopener\" target=\"_blank\">Shalom Meckenzie<\/a> is leading a wave of selling by DraftKings insiders, recently dumping $567.8 million worth of the stock.<\/p>\n<blockquote class=\"main-blockquote\">\n<p>Several weeks ago, Meckenzie <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1772757\/000134100421000198\/sc13d-a3.htm\" rel=\"nofollow noopener\" target=\"_blank\">transferred 19 million shares<\/a> to a trust for his spouse and kids, paving the way for them to dispose of ~$1 billion in stock without the same reporting requirements he would be subject to,\u201d according to the research firm.<\/p>\n<\/blockquote>\n<p>In addition to allegations that SBTech operates in China, Thailand, and Vietnam \u2014 all countries where sports betting is barred \u2014 and that the company has ties to a triad crime boss, Hindenburg notes DraftKings\u2019 recent market value is in excess of rivals FanDuel, Supergroup, and Wynn Interactive combined. The research firm calls that an \u201cextremely rich valuation\u201d when considering the company may not be profitable until 2025.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Woods_ARK_Buys_the_Dip_in_DraftKings_Stock\"><\/span>Wood\u2019s ARK Buys the Dip in DraftKings Stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While Hindenburg said it\u2019s short DraftKings stock, other investors used Tuesday\u2019s retreat to add to long positions in the gaming name.<\/p>\n<div class=\"callout\">\n<p>Cathie Wood\u2019s ARK Investment Management bought $42.2 million worth of the name yesterday, or 870,299 shares. The exchange traded funds (ETF) issuer allocated about 688,700 of those shares to the ARK Innovation ETF (NYSEARCA:ARKK) \u2014 its biggest fund. The remainder went to the ARK Next Generation Internet ETF (NYSEARCA:ARKW).<\/p>\n<\/div>\n<p>New York-based ARK <a href=\"https:\/\/www.casino.org\/news\/draftkings-stock-soars-helped-by-ark-buying-investor-day-reaction\/\" rel=\"nofollow noopener\" target=\"_blank\">has been gobbling up<\/a> DraftKings stock for months, and is among the largest institutional holders of the name. The stock is the 17th-largest holding in the famed ARK fund. The ARK Fintech Innovation ETF (NYSEARCA:ARKF) also holds DraftKings, but Tuesday\u2019s buying activity in the name wasn\u2019t directed to that fund.<\/p>\n<p>This isn\u2019t the first time Wood\u2019s firm used a decline in a stock prompted by short sellers to add to a position. In April, <a href=\"https:\/\/www.casino.org\/news\/skillz-stock-bought-and-defended-by-ark-investment-management\/\" rel=\"nofollow noopener\" target=\"_blank\">the fund issuer defended<\/a> mobile games platform provider Skillz (NYSE:SKLZ) following a spate of bearish research, using weakness in that name to buy the shares.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Analysts_Chime_in_Too\"><\/span>Analysts Chime in, Too<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As Credit Suisse did yesterday, several research firms are out today in defense of DraftKings. Jefferies analyst David Katz said the crucial matter is whether or not DraftKings adequately disclosed SBTech\u2019s black\/gray market exposure and whether that exposure remains today. While noting the matter is unresolved and raises \u201ca series of key questions and issues worth noting,\u201d the analyst keeps a \u201cbuy\u201d rating and $75 price target on the stock.<\/p>\n<div class=\"callout\">\n<p>Truist analyst Barry Jonas said it\u2019s unlikely the US and other regulators will deny DraftKings gaming licenses as a result of the controversy, and that SBTech isn\u2019t a meaningful contributor to the parent company\u2019s revenue. He keeps a \u201chold\u201d rating and $54 forecast on the stock.<\/p>\n<\/div>\n<p>Susquehanna analyst Joseph Stauff said the SBTech revelation isn\u2019t surprising, because nearly all European and UK sports betting firms operate in black\/gray markets. He adds that if there are risks with DraftKings, they are launch speeds and the company\u2019s cash burn rate. The analyst has a \u201cpositive\u201d rating on the shares with a $75 estimate.<\/p>\n<p>Morgan Stanley\u2019s Thomas Allen says unregulated international markets probably account for just eight percent of DraftKings revenue, and that SBTech will decline to five percent of the company\u2019s sales in 2025. He adds that if DraftKings sees fit to dispose of SBTech\u2019s legacy assets, it won\u2019t affect overall forecasts. Allen rates the stock \u201coverweight,\u201d with a $58 target.<\/p>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-supported-after-being-blasted-by-hindenburg-report\/\" target=\"_blank\">DraftKings Defended by Analysts, Wood\u2019s ARK Invest Following Hindenburg Short Report<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/www.casino.org\/news\" target=\"_blank\">Casino.org<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>A day after slumping following publication of a bearish report by Hindenburg Research, DraftKings stock (NASDAQ:DKNG) is rebounding modestly Wednesday. Several analysts are defending the sportsbook operator, along with the support of a well-known investor. ARK Investor founder Cathie Wood, seen above. Her firm bought more DraftKings stock following release of a bearish research report. <a href=\"https:\/\/xxbet-company.com\/es\/draftkings-defended-by-analysts-woods-ark-invest-following-hindenburg-short-report\/\" class=\"more-link\">&#8230;<\/a><\/p>","protected":false},"author":1,"featured_media":370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/posts\/369"}],"collection":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/comments?post=369"}],"version-history":[{"count":0,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/posts\/369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/media\/370"}],"wp:attachment":[{"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/media?parent=369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/categories?post=369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xxbet-company.com\/es\/wp-json\/wp\/v2\/tags?post=369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}