Ep 174: Cathie Wood vs. Hindenburg: The $42 Million Bet on Draftkings (DKNG)
Hindenburg struck again, this time targeting popular sports gambling and fantasy sports company DraftKings (DKNG).
Some well-known investors in DraftKings include Walt Disney (DIS), WWE (WWE) owner Vince McMahon, and owner of the New England Patriots, Robert Kraft. DraftKings also has lucrative partnerships with the NFL, MLB, NHL, NASCAR, UFC, and the Dish Network.
A lot of potential brands could be hurt by these allegations if proven true.
Wood is well known to target companies she likes long-term that are beaten down. Some examples of this include her continued support of Coinbase (COIN) and Teladoc (TDOC) during their prolonged dips.
How much DraftKings did Wood buy? She added $42 million worth or 870,299 shares following Hindenburg’s report. The stock now represents the 19th and 17th largest holdings in each ETF respectively.
… Who will win?
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