ARK Pares Stake in Slumping Skillz Stock

Mobile games developer Skillz Inc. (NYSE:SKLZ) is probing young lows today. That’s as stocks droop and as securities industry participants terms in the fact that a major investor reduced its stakes inwards the gaming name.

On Tuesday, Cathie Wood’s ARK Investment Management dumped 952,252 shares of Skillz from the ARK Innovation ETF (NYSEARCA:ARKK) — the issuer’s largest exchange-traded fund. This isn’t the first off time the New York-based money manager pared its posture inwards Skillz, but it is the firm’s biggest sale of the gillyflower since it began edifice a stance in the name earliest this year.

Wood’s stiff is an alive(p) manager, signification it’s perpetually buying and merchandising various stocks and altering positions in its ETFs, including ARKK. Still, the monetary fund issuer’s sales event of Skillz carry could evoke some eyebrows, because it comes as the gaming name is mired inwards a lengthy fall off that’s seen it drop 56.55 percent year-to-date, and 81.47 percent from its Feb highs.

Following Tuesday’s sale, ARK owns 10.94 zillion shares of Skillz inwards ARKK. The fund sponsor also holds nearly vi 1000000 Skillz shares in the ARK Next Generation ETF (NYSEARCA:ARKW).

Wild Year for Skillz Stock

San Francisco-based Skillz became a standalone public society endure Dec next a merger with a special resolve acquisition companion (SPAC).

Since then, it’s been an eventful ride for the gaming company. Investors are taking de-SPACed companies to task for cushy business deal terms for too soon investors and deficiency of profitability. Specific to Skillz, the accompany is enduring a spate of bearish commentary as at to the lowest degree deuce-ace little sellers published overtly disconfirming explore on the stiff earlier this year.

One of those reports claims Skillz overstates its ontogeny opportunities, spell another says the keep company may be piquant in accounting system chicanery. Previously, ARK defended the keep company against the unforesightful sellers, calling some of the research misguided.

Today, 20.52 percent of Skillz shares undischarged are sold short, and the stockpile late generated some bombilate as i potentially ripe for a unforesightful squeeze. But that scenario has yet to materialize.

ARK Still Fond of Gaming Equities

While ARK reduced its wager inward Skillz stock, the ETF issuer remains bullish on some other gaming equities, to wit DraftKings (NASDAQ:DKNG) and Genius Sports (NYSE:GENI).

Wood’s solid recently added to positions inwards the online sportsbook operator and the provider of sports wagering data.

DraftKings is a holding inward the aforementioned ARKK and ARKW, as well as the ARK Fintech Innovation ETF (NYSEARCA:ARKF). Genius Sports is a constituent inwards the net ETF. ARK is ace of the largest institutional investors inward both gaming equities.