? Wood bought out DraftKings on a $40 million drawdown

? Katie Wood’s ARK Invest fund bought DraftKings (NASDAQ:DKNG) out of a $40 million drawdown on Wednesday as the stock fell more than 8% on news that the company had offered to buy sports betting rival Entain (LON:ENT) for $20 billion in cash and stock.

? A few months ago, the British company rejected a similar $11bn offer from MGM Resorts (NYSE:MGM). The news pushed Entain’s stock up 18%, but crushed DraftKings stock, which fell 8.2%, Markets Insider writes.

? Two ARK-managed ETFs bought a total of 759,819 shares of the bookmaker a day after falling. At Wednesday’s closing prices, the purchase price was just under $40 million, and compared to Monday’s prices, ARK investors saved $3.3 million on the deal.

? The ARK Innovation ETF (NYSE:ARKK) now has 10.6 million shares of DraftKings, and the ARK Next Generation Internet ETF (NYSE:ARKW) has 3.6 million shares.

? Meanwhile, investment research firm Hedgeye said Thursday that DraftKings is one of the best short ideas on the market, citing its “high” valuation, aggressive competition and tough industry. Hedgeye analysts warned that the stock could face a 20-25% downside risk. But Wall Street’s overall sentiment seems more optimistic. Of the 25 analysts covering DraftKings listed on FactSet, 17 recommended buying the stock and 8 recommended holding it, but none suggested shorting it.

? Also on Wednesday at the Morningstar investment conference, Kathy Wood talked about when she will start selling shares of Tesla (NASDAQ:TSLA), the fund’s biggest bet.

? “If nothing changed in our projections and we got $3,000 (Tesla’s stock price) next year, I believe we would start exiting it,” Wood is quoted by Bloomberg as saying.

? At the time, Tesla’s share price was around $752, meaning the electric car maker’s stock would need to rise 299% from current levels to reach its 5-year Ark target price.

? Wood remains optimistic about Tesla, expecting the company to benefit from strong demand as the average cost of electric cars continues to decline in the coming years. She believes the average price of an electric car will fall below that of a gasoline car over the next year or so.

? As of Wednesday, Tesla stock was up 7% YTD, while shares of its flagship breakthrough innovation fund Ark were down 5%. On Friday, Tesla stock is up 1.75% and approaching $767 a paper.