Cathie Wood’s suite of tech-centric investment funds has been dumping large sums of sports betting firm DraftKings Inc (NASDAQ:DKNG) stock as the kneejerk reaction to Disney’s venture into sports betting through its subsidiary ESPN.
Wood’s Ark Invest sold a total of 444,000 shares in the Nasdaq-listed group valued at approximately US$13.5 million on a five-day share price average.
These exits came just in time to skirt the 8% plunge when the stock market opened on Wednesday.
Cathie Wood and Ark Invest's trade activity from today 8/8 pic.twitter.com/hHWpd8E3mV
— Ark Invest Daily (@ArkkDaily) August 9, 2023
DraftKings shareholders have reacted negatively to news of the Mouse House’s move into online sports betting via a joint venture with Penn Entertainment called ESPN Bet.
This collaboration instantly establishes the Disney-affiliated venture in 16 states, offering licensed sports betting through a mobile app, website, and physical outlets.
Over the expected duration of the alliance, Penn will remit approximately US$1.5 billion to Disney-owned ESPN.
At the time of writing, DraftKings stock was swapping for US$29.18 with a market capitalisation of US$13.52 billion.