Endeavor Group Gets Nod from Cathie Wood’s ARK Invest, Shares Rise
Posted on: December 15, 2021, 01:10h.
Final updated on: December 15, 2021, 02:08h.
Shares of Endeavor Group Holdings, Inc. (NYSE:EDR), the parent business of the Ultimate Fighting Championship (UFC), have received an endorsement from a well-known investor. Cathie Wood’s ARK Investment Management stepped into the stock yesterday.
The New York-based exchange traded funds issuer purchased practically 178,000 shares of Endeavor on Tuesday, directing that acquire to the ARK Subsequent Generation ETF (NYSEARCA:ARKW). Endeavor stock, which is up 19.17 percent year-to-date, traded greater nowadays following the ARK purchase, gaining 1.two% on volume that was above the everyday average.
Endeavor isn’t a pure play gaming organization, nor does it accept wagers from bettors. But it is growing its footprint on the organizations-to-enterprise side of the industry.
In September, the firm announced the $1.two billion cash and equity purchase of the OpenBet sports wagering service from Scientific Games (NASDAQ:SGMS). Endeavor also operates IMG Arena, which provides streaming video and information solutions to sportsbooks, indicating there are potential synergies by adding OpenBet to the mix.
Endeavor Stock Reasonable Addition to ARKW
The $four.74 billion ARKW is an actively managed fund, which means it has holdings-level flexibility. The seven-year old fund has extended focused on artificial intelligence, huge information, cloud computing, e-commerce, and social media names, among other individuals.
Nonetheless, Endeavor is one particular of 4 stocks in the fund with gaming exposure. ARKW is 1 of the biggest ETF owners of DraftKings (NASDAQ:DKNG) and Genius Sports (NYSE:GENI) and also has a position in mobile games developer Skillz (NYSE:SKLZ), indicating Endeavor is a reasonable addition to the ARKW portfolio.
That quartet of gaming equities combines for about 5.four % of ARKW’s weight.
Endeavor also owns the Professional Bull Riders (PBR) and Euroleague. But the aforementioned IMG Arena organization and the company’s increasing sports betting exposure validates its inclusion in ARKW.
Endeavor stock is greater by 8.8 % over the past month, indicating ARK is purchasing into strength in the sports and entertainment name.
In addition to expanding its sports wagering exposure, the business lately created Diamond Baseball Holdings (DBH), which it is making use of to acquire minor league baseball teams.
Final week, DBH announced the acquisitions of Triple-A affiliates of the Chicago Cubs, New York Yankees, and the St. Louis Cardinals, as properly as the purchases of the Yankees’ High-A affiliate and the San Francisco Giants’ Single-A club.
Endeavor also has a pending deal to run 4 minor league teams attached to the Globe Series champion Atlanta Braves.
“Endeavor is also in late stage negotiations with a handful of other considerable franchises and expects to announce these developments in due course,” according to the firm.