The stock of DraftKings (NASDAQ: DKNG) has fallen by 35 percent so far this year. Even as more states pass legislation to legalize sports gambling, the Bears maintain complete control over DraftKings sentiment. The playing field may deteriorate before it begins to improve.

In response to the rapid increase in Covid-19 cases and the omicron variant, the National Hockey League canceled the remainder of its season through the Christmas holiday. Aside from that, the NHL reinstated daily drug testing for its players and announced that its players would not be participating in the Winter Olympics.

However, while the National Basketball Association has stated that it is not considering a shutdown at this time, numerous games have been postponed and the league has allowed teams to expand their rosters to field a competitive team.

The National Football League, the most popular and profitable league in professional sports, has not lost a game as a result of Covid-19, but some games have been postponed and dozens of coaches and players have been forced to sit out.

Is it any surprise that the DKNG stock is underperforming?

However, if you keep track of Cathie Wood's investments, there is reason to be optimistic about the future of DraftKings stock.

Wood raises her standing.

Cathie Wood, the well-known CEO of ARK Investments, announced on December 20 that her company has increased its position. In addition, she purchased an additional 55,400 shares of DKNG stock for the ARK Fintech Innovation ETF (NYSEARCA:ARKF). Wood purchased DraftKings stock for the first time in more than a month on Tuesday.

ARK Investments now owns more than 18.5 million shares of DraftKings stock, bringing its total holdings to more than $18.5 million. Its stake in DraftKings accounts for 4.5 percent of the company's total stock market value, which is approximately $12.3 billion. In addition to DraftKings' ownership of ARKF, Wood's company owns two of her exchange-traded funds, the ARK Next Generation Internet ETF (NYSEARCA: ARKW) and the ARK Innovation ETF (NYSEARCA: ARKI) (NYSEARCA: ARKK).

It's worth keeping an eye on Wood's investment style. She's been dubbed "Wall Street's hottest investor" because of her success. She is best known for placing bets on high-growth companies in the financial technology, robotics, and other new technology trends sectors.

According to Wood, who spoke with Benzinga earlier this year, DraftKings appeals to her because it is becoming more widely accepted as a sports betting platform. She also pointed out that more states are moving toward the legalization of marijuana.

"We believe that the stigma associated with sports betting is fading," she said at the time.

It's encouraging to see Woods' continued confidence in DraftKings stock if you're a fan of hers and her tech-first growth investment portfolio.

 

A Quick Look at the Stock of DraftKings

As previously stated, DraftKings is having a difficult year in 2021. The stock of DKNG has dropped by more than 45 percent over the last three months.

One factor in the stock's decline can be traced to the disclosure of a short position in DKNG by renowned short-seller Jim Chanos, which resulted in the stock falling from $35 to nearly $28. Founder and CEO Mark Chanos claims that DraftKings is worth "30 times runaway revenue."

The company also suffered a setback in its international expansion efforts when it decided to abandon its $22 billion deal to purchase sports betting company Entain (OTCMKTS: GMVHY).

Fortunately, DraftKings is planning to launch gamified NFT collections, which will debut on the DraftKings Marketplace during the NFL season of 2022-2023, according to the company. The company is collaborating with the National Football League Players Association (NFLPA) and OneTeam Partners to bring this project to life (the group licensing partner of the NFLPA).

The agreement will grant DraftKings licensing rights for active NFL players, including the right to use their names, images, and likenesses in promotional materials.

Summary of DKNG Stock Earnings for the Third Quarter Offers Reason for Optimism The company reported revenue of $213 million, which represented a 60 percent increase over the same period the previous year. 1.3 million monthly unique paying customers, according to DraftKings, use the company's platform.

DraftKings' short-term viability will almost certainly be determined by how professional and college sports deal with the increasing number of Covid-19 cases and the omicron variant in their respective leagues.

The stock of DKNG is worth another look if you have faith in Woods' ability to identify cutting-edge technology companies.