DraftKings (DKNG) Stock Hits $60.11 in 2025 as ARK Invest Boosts Stake by $60M

In 2024, ARK Invest significantly increased its investment in DraftKings Inc. (DKNG) by $60 million, signaling strong confidence in the online sports betting sector.

Following this move, online gaming stocks surged, driven by Cathie Wood's strategic purchase of over one million additional DraftKings shares distributed across her ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW). This latest acquisition brings ARK Invest's total holding in DraftKings to approximately $846 million, based on the recent closing price of $60.11.

Highlights to Watch

• ARK Invest's increased DraftKings stake underlines growing investor interest in digital sports betting.
• DraftKings shares are expected to find strong support near $54, aligning with the neckline of an inverse head and shoulders pattern.
• Penn National Gaming (PENN) presents a buying opportunity around $73, supported by a key short-term horizontal trendline.

DraftKings, a leader in digital sports entertainment, offers daily fantasy sports, sports betting, and iGaming platforms. The company benefits from the resurgence of live sports events and expanding online gambling demand, including poker and blackjack. A recent partnership with DISH Network aims to introduce DraftKings’ sportsbook and fantasy experiences to nearly 9 million DISH customers nationwide. Currently, DraftKings boasts a market capitalization of $24.25 billion and has gained nearly 30% year-to-date.

The stock recently completed an inverse head and shoulders bottom formation between June and early August, breaking decisively above the neckline and the 200-day simple moving average (SMA). Given the relative strength index (RSI) is above 70, indicating overbought conditions, investors might consider waiting for a price pullback to around $54 for an optimal entry point.

Technical Insight

The inverse head and shoulders pattern, a bullish reversal indicator, suggests a potential upward trend following a downtrend, making the $54 support level a critical entry point.

Penn National Gaming, Inc. (PENN) Overview

Penn National Gaming, valued at $12.53 billion, offers online sports betting, casinos, and digital bingo. Recently, Penn National expanded its Canadian presence by acquiring Score Media and Gaming Inc. for nearly $2 billion, capitalizing on Canada's new legislation legalizing single-event sports betting. Additionally, Penn National secured a sports betting permit in Arizona just before the 2024 NFL season kickoff.

Despite a 7.47% decline year-to-date, Penn National's stock price rebounded sharply after testing a multi-month downtrend line, with momentum accelerating recently. The RSI remains below overbought levels, but after four consecutive positive sessions, a pullback is possible. Investors should consider placing limit buy orders near $73, where the stock has demonstrated consistent support over the past five months.

Technical Insight

Horizontal trendlines mark critical support and resistance zones formed by repeated price highs or lows, helping traders identify strategic entry points.

Note: The author holds no positions in the mentioned securities at the time of writing.

For more investment insights and updates, stay tuned to ZAMONA's expert analysis on the evolving sports betting market.

Discover engaging topics and analytical content in Markets News as of 31-08-2021. The article titled " DraftKings (DKNG) Stock Hits $60.11 in 2025 as ARK Invest Boosts Stake by $60M " provides new insights and practical guidance in the Markets News field. Each topic is meticulously analyzed to deliver actionable information to readers.

The topic " DraftKings (DKNG) Stock Hits $60.11 in 2025 as ARK Invest Boosts Stake by $60M " helps you make smarter decisions within the Markets News category. All topics on our website are unique and offer valuable content for our audience.