Market's view on Flutter Entertainment
Published on April 2024
- A stock watcher highlighted FanDuel’s effective strategy in achieving a higher hold compared to DraftKings, which appears heavily reliant on high turnover but low margin VIP play.
- Another remark was made about the vanity of top-line revenue and the importance of actual profits.
- DraftKings’ poor win rate in New York was noted, despite topping the weekly handle, contrasting sharply with FanDuel’s robust performance.
- Concerns were raised about Flutter’s stock being sold by short-sighted investors due to its delisting from the LSE.
- Impressive iGaming revenue figures from New Jersey, Pennsylvania, and Michigan were discussed, with Michigan setting new records.
- The decline in share price driven by retail investors, with institutional investors holding firm, was pointed out.
- Observations were made on North Carolina’s market performance with substantial promotional expenses.
- Expectations were set for upcoming corporate actions potentially influenced by earnings, with a speculative interest in a possible name change for the company.
- Discussions on the financial implications of operations in New York, highlighting considerable taxes and a decent return despite them.
- A general downturn was noted across all gambling stocks, with Flutter’s share price reacting to various financial disclosures and targets.
- DraftKings’ financial position was examined, noting its significant cash reserves against its debt levels, contrasting with Flutter’s higher net debt.
- The impact of European market exclusions due to primary listing changes from LSE to NYSE was debated regarding investor uncertainty.
- Legislative changes affecting the industry, such as proposed tax increases, were also a concern for their potential impact on the sector.