DraftKings (NASDAQ:DKNG) stock is down 35% so far this year. Bears are fully in control of DraftKings sentiment, even as more states approve laws to allow sports gambling. Its possible the playing field will get worse before it gets better.

The National Hockey League shut down its season through the Christmas holiday because of the rapid uptick of Covid-19 cases and the omicron variant. The NHL also reinstated daily tests for its players, and it declared its players would not participate in the Winter Olympics.

The National Basketball Association says it’s not considering a shutdown – yet – but numerous games have been postponed and the league allowed teams to expand rosters so they would have enough players to field a team.

The National Football League – pro sports most popular and profitable league – hasn’t lost any games to Covid-19, but some games were pushed back and dozens of coaches and players had to sit out.

Is it any wonder why DKNG stock is suffering?

But if you follow the investments of Cathie Wood, there’s some reason to hope for DraftKings stock.

Wood Increases Her Position

Cathie Wood, the renowned head of ARK Investments, has added to her company’s position on Dec. 20. She bought another 55,400 shares of DKNG stock for the ARK Fintech Innovation ETF (NYSEARCA:ARKF). It was the first time in a month that Wood bought DraftKings shares.

In total, ARK Investments now owns more than 18.5 million shares of DraftKings stock. Its position accounts for 4.5% of all DraftKings shares, and is valued at roughly $12.3 billion. Wood’s company owns DraftKings in ARKF and two other of her exchange-traded funds – the ARK Next Generation Internet ETF (NYSEARCA:ARKW) and the ARK Innovation ETF (NYSEARCA:ARKK).

Wood’s investing style is worth watching. She’s been called “Wall Street’s hottest investor.” She’s best known for betting on high-growth names in fintech, robotics and other new tech trends.

Earlier this year, Wood told Benzinga that she likes DraftKings because its becoming accepted as a platform for sports betting. And she noted that more states are turning toward legalization.

“We do think sports betting is losing its taint,” she said at the time.

If you’re a fan of Woods and her tech-first growth portfolio, then her continued confidence in DraftKings stock is comforting.

DraftKings Stock at a Glance

As I mentioned, DraftKings is having a rough 2021. Over the last three months, DKNG stock is down more than 45%.

Part of that fall can be attributed to famed short-seller Jim Chanos, who disclosed a short position in DKNG stock that sent shares from $35 to nearly $28. Chanos says that DraftKings has a valuation of “30 times runaway revenue.”

The company also suffered a setback to its international aspirations when it abandoned its $22 billion deal to buy sports betting company Entain (OTCMKTS:GMVHY).

On the plus side, DraftKings is planning to launch gamified NFT collections to debut on DraftKings Marketplace during the 2022-2023 NFL season. The company is working in conjunction with the National Football League Players Association (NFLPA) and OneTeam Partners (the group licensing partner of the NFLPA).

The deal will give DraftKings licensing rights for active NFL players, including use of their names, images and likenesses.

The Bottom Line on DKNG Stock

Third-quarter earnings for DraftKings offers some reason for optimism. The company reported revenue of $213 million, which was an increase of 60% from a year ago. DraftKings says it has 1.3 million monthly unique paying customers on its platform.

DraftKings’ short-term future will certainly be tied to how professional and college sports handle rising Covid-19 cases and the omicron variant.

However, if you have confidence in Woods’ ability to identify cutting-edge technology stocks, then DKNG stock is worth another look.

On the date of publication, Patrick Sanders did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders.