Cathie Wood’s 5 Favorite Stock Picks for the Rest of 2022

In this article, we discuss Cathie Wood’s 5 favorite stock picks for the rest of 2022. If you want to see more stocks in this selection, click Cathie Wood’s 10 Favorite Stock Picks for the Rest of 2022. 

5. DraftKings Inc. (NASDAQ:DKNG)

Number of Hedge Fund Holders: 27

DraftKings Inc. (NASDAQ:DKNG) is a Massachusetts-based digital sports entertainment and gaming company. Cathie Wood’s ARK Investment Management added DraftKings Inc. (NASDAQ:DKNG) to its portfolio by purchasing more than 25 million shares, worth about $342.5 million, representing 2.02% of the total holdings. 

On July 20, Truist analyst Barry Jonas maintained a Hold rating on DraftKings Inc. (NASDAQ:DKNG) and slashed the firm’s price target on the shares to $16 from $18 in light of the Q2 results in the Gaming industry. The analyst noted that the recent quarter should be “fine”, the outlook looks “less certain”, and adopting a more conservative view is important.

According to Insider Monkey’s data, DraftKings Inc. (NASDAQ:DKNG) was part of 27 hedge fund portfolios at the end of March 2022, compared to 34 funds in the previous quarter. Raine Capital is a notable stakeholder of the company, with 11.2 million shares worth $218.4 million.

Here is what Baron Small Cap Fund has to say about DraftKings Inc. (NASDAQ:DKNG) in its Q4 2021 investor letter:

“Shares of DraftKings, Inc. fell in the quarter, as stocks of online gaming companies were under pressure. Sports betting and i-gaming are rolling out with great fanfare and success across the country; however, investors seem concerned about competition and margins. Most participants are spending heavily on marketing and promotions, which is cutting into margins. We see this as a worthy investment in customer acquisition at a moment in time when revenues are just building. We continue to believe that online sports betting and gaming will be enormous industries, and that DraftKings will be a leading player. We think the business will have high margins as it matures. We believe we are underwriting the business conservatively and see much upside in the long term.”