Stocks to buy

Who’s investing in sports wagering company DraftKings (NASDAQ:DKNG)? Plenty of retail traders, sure, but also some big banks and even a firm led by the one and only Cathie Wood. This, along with a current deal with Amazon (NASDAQ:AMZN) and a potential deal with Disney (NYSE:DIS), should make DKNG stock investors all the more confident in their positions.

DraftKings, and the sports betting market generally, received a great deal of attention on Wall Street after the onset of Covid-19. Lately, however, it might feel as if investors have abandoned DraftKings altogether.

Yet, there’s more support for DraftKings among big-money investors than you might think. Perhaps they’re willing to spin the wheel and wager their capital on a sports betting revival — and they surely know that DraftKings has at least one headline-grabbing deal on its books.

5 Investors Betting Big on DKNG Stock

Sure, plenty of small-scale traders are wagering on DraftKings’ future growth. However, you might be surprised to discover that some big spenders are also rolling the dice and putting their chips on DKNG stock. So, here’s a quick rundown of some top institutional investors as of June 29, 2022.

  • Vanguard: a jaw-dropping 32.51 million DKNG shares, which represents 7.25% of the outstanding shares.
  • ARK Investment Management: 25.28 million shares, meaning that Cathie Wood’s firm held 5.64% of the outstanding shares.
  • BlackRock (NYSE:BLK): 14.73 million shares, or 3.28% of DraftKings’ outstanding shares.
  • Capital Research Global Investors: an impressive stake of 13.37 million shares, which translates to 2.98% of the outstanding shares.
  • T Rowe Price (NASDAQ:TROW): 9 million DraftKings shares, or 2.01% of the outstanding shares.

DraftKings Has One, And Maybe Even Two, Value-Added Deals

It’s encouraging to know that Wood, a respected investor, favored DKNG stock. Nevertheless, there are other reasons to consider an investment in DraftKings now. Among them is DraftKings’ current deal with Amazon, and a potential one with Disney-owned ESPN.

DraftKings has already established a multi-year collaboration with Amazon. The two companies intend to provide pregame content and betting offers “every Thursday throughout the NFL season,” and this should provide massive exposure for DraftKings.

Meanwhile, DraftKings may soon collaborate with the almighty Disney — or at least, with Disney’s sports network, ESPN. Reportedly, sources say DraftKings and ESPN are “on the cusp of signing an exclusive partnership … that [would] have shows and perhaps odds integrated into game broadcasts.”

Despite all of this, DKNG stock was recently beaten down to just $12 and change. Bear in mind that the stock’s 52-week high is $50.48.

In other words, the selling looks overdone as DraftKings is currently working with an e-commerce giant. Plus, DraftKings could have a tie-in with ESPN soon. No guarantees here, but it’s possible.

Additionally, Wood’s stake and the investments of other big-name firms should make DraftKing’s value proposition all the more evident. So, don’t be afraid to press your luck and wager a few dollars on DKNG stock.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

This article was originally published by Investorplace.com. Read the original article here.