Nikola Stock – Cathie Wood’s Ark buys into DraftKings after shares fall on short-seller report
(Reuters) – Cathie Wood’s Ark Invest said it bought shares of DraftKings on Tuesday, as the betting firm’s stock slumped after Hindenburg Research disclosed a short position.
DraftKings’ shares, which fell as much as 11.8% on Tuesday, were slightly up in volatile trading on Wednesday.
Ark Invest bought about 870,300 shares of DraftKings, making its position worth about $42.2 million, based on the stock’s Tuesday close.
The sports betting operator is the latest target in short seller Hindenburg’s recent string of attacks against companies that went public through mergers with blank-check firms, after EV maker Lordstown Motors and Nikola Corp.
Reporting by Subrat Patnaik in Bengaluru and Thyagaraju Adinarayan in London; Editing by Shinjini Ganguli