DraftKings (DKNG) -), the online sports betting company, came under fire Monday for offering a 9/11-themed bet parlay, which would pay out if three New York teams — the Mets, Jets, and Yankees — won their games Monday, on the 22nd anniversary of the Sept. 11 terror attacks that claimed nearly 3,000 American lives.
The firm later pulled the parlay, apologizing in a post on X (formerly known as Twitter).
"We sincerely apologize for the featured parlay that was shared briefly in commemoration of 9/11," DraftKings said. "We respect the significance of this day for our country and especially for the families of those who were directly affected."
Related: Cathie Wood buys into recently declining tech stock for millions of dollars
Against this backdrop, Ark Invest's flagship Innovation ETF (ARKK) -) dumped 469,217 shares of the company, valued at $14.92 million, based on DraftKings' closing price of $31.79 per share.
Even after the selloff, DraftKings remains one of Ark's largest holdings; the firm's 10.5 million shares in the company, valued at around $336.2 million, make up 4.29% of the fund, which remains dominated by Ark's $890 million holding in Tesla (TSLA) -).
Ark Innovation simultaneously bought up 258,811 shares of Roblox (RBLX) -), worth around $7.4 million, and 406,432 shares of Robinhood Markets (HOOD) -), valued at around $4.5 million.
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DraftKings' stock, which fell Monday, is up around 180% for the year. The company, based on analyst consensus, has a moderate buy rating, with an average price target of $36.16.
DraftKings reported second-quarter earnings Aug. 3, noting revenue of $875 million, an 88% increase compared to the year-ago period. DraftKings raised its fiscal year 2023 guidance to a range of $3.46 to $3.54 billion, up from the $3.135 to $3.235 billion it had predicted in May.
The company reported a loss per share of $.17 and said it expects to see $1.2 billion in revenue for the fourth quarter of 2023.
“We are acquiring new customers efficiently while simultaneously retaining and monetizing our existing players through rapid product innovation, less promotions, and higher hold from better bet mix,” Jason Park, DraftKings’ CFO, said in a statement.
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