Core Viewpoint - The recent decline in shares of DraftKings Inc and Flutter Entertainment PLC is seen as unwarranted by analysts, who believe both companies have significant opportunities in the prediction markets space, estimated at $5 billion [1][3][6]. Company Analysis - DraftKings has an Outperform rating with a price target of $48, while Flutter Entertainment also holds an Outperform rating with a price target of $330 [1][2]. - The total addressable market (TAM) for DraftKings and Flutter in prediction markets is estimated at $5 billion, which includes $4.4 billion for sports prediction markets and $600 million for non-sports prediction markets [4]. - Analysts estimate that DraftKings and Flutter could achieve market shares of 14% and 16%, respectively, in prediction markets in states where online sports betting is not yet legalized [5]. Market Context - Since the end of August, DraftKings and Flutter have seen market capitalizations decrease by approximately $10 billion and $20 billion, respectively [6]. - The market is currently pricing in a worst-case scenario regarding the TAM, assuming that all states legalize online sports betting without allowing the launch of prediction markets [6]. - DraftKings shares closed at $29.44, down 1.83%, while Flutter shares closed at $191.79, down 0.79%, reflecting year-to-date declines of 18.9% and 24.7%, respectively [7][8].

Core Insights - FanDuel has launched "Pass The Leg," a multi-user parlay builder that enhances social interaction in sports betting, coinciding with Thanksgiving [1][3][4] Group Features - The feature allows users to collaboratively build a parlay by inviting friends and family to contribute picks, making it a shared experience [2][3] - Each participant can place individual bets using their own funds and benefit from a dedicated Profit Boost for the group parlay [2][4] Market Position - "Pass The Leg" is the first true multi-user parlay-building experience offered by a major U.S. sportsbook operator, catering to the demand for more interactive betting experiences [3][4] - FanDuel aims to integrate social elements into the betting experience, reflecting how fans engage in group chats and gatherings [4] Operational Details - The feature is available exclusively for the three NFL games on Thanksgiving Day, allowing a minimum of three legs and up to twenty-five total legs in a parlay [3][4] - FanDuel operates across all 50 states with approximately 17 million customers and 25 retail locations, indicating a strong market presence [5]

Core Insights - The article compiles significant research calls from Wall Street, highlighting upgrades and downgrades of various companies that investors should be aware of [1] Upgrades - Wells Fargo upgraded Merck (MRK) to Overweight from Equal Weight with a price target of $125, increased from $90, citing business development and pipeline progress as key factors for revenue growth in the early 2030s [2] - Wolfe Research upgraded Morgan Stanley (MS) to Outperform from Peer Perform with a price target of $198, anticipating accelerated revenue growth from investment banking share gains and organic growth in wealth management [3] - HSBC upgraded Flutter Entertainment (FLUT) to Buy from Hold with a price target of $228, reduced from $265, viewing the recent share selloff as a buying opportunity [3] - BofA upgraded Booking Holdings (BKNG) to Buy from Neutral with an unchanged price target of $6,000, believing that concerns regarding disintermediation risks from Google and OpenAI are overstated [4] - Wedbush upgraded Carvana (CVNA) to Outperform from Neutral with a price target of $400, increased from $380, suggesting that the recent share pullback is overdone [5] Downgrades - UBS downgraded JFrog (FROG) to Neutral from Buy with a price target of $65, up from $48, indicating that while AI-related benefits are significant, the larger revenue impact is likely 12-18 months away [6] - Jefferies downgraded Exact Sciences (EXAS) to Hold from Buy with a price target of $105, up from $90, due to the pending acquisition by Abbott, which is seen as a win for Exact Sciences [6] - Evercore ISI downgraded QuantumScape (QS) to In Line from Outperform with a price target of $12, up from $8, citing valuation concerns as shares have risen 200% year-to-date [6] - UBS downgraded Jazz Pharmaceuticals (JAZZ) to Neutral from Buy with a price target of $188, up from $163, stating that the stock appears fairly valued after a strong Phase 3 GEA update and a 25% stock increase [6] - TD Cowen downgraded PureCycle Technologies (PCT) to Hold from Buy with a price target of $9, down from $16, due to delays in orders and growth plans, prompting a more cautious stance [6]

Core Insights - Flutter Entertainment plc (NYSE:FLUT) is experiencing a competitive environment for account openings, leading to a decline in stock performance despite being a strong company [1] - The company reported mixed earnings, with soft revenue attributed to adverse gambling outcomes, but higher than expected earnings [1] - Flutter is expanding into the predictions market with the launch of FanDuel Predicts in partnership with the CME Group [1] Company Overview - Flutter Entertainment operates well-known brands in sports betting and online gaming, including FanDuel, PokerStars, Betfair, and Paddy Power [1] - The company is navigating a challenging market environment characterized by intense competition [1] Financial Performance - The latest earnings report indicated soft revenue due to unfavorable gambling outcomes [1] - Despite the revenue challenges, Flutter achieved higher than expected earnings [1] Strategic Initiatives - Flutter is entering the predictions market, similar to recent moves by competitors like DraftKings [1] - The launch of FanDuel Predicts is set for next month, indicating a proactive approach to market expansion [1]

The NBA, MLB and NFL have all worked with betting companies to put restrictions on prop bets — wagers placed on a specific statistic within a game ...

Group 1: DraftKings and Flutter Entertainment - Wells Fargo initiated coverage of DraftKings (DKNG) with an Equal Weight rating and a price target of $31, expressing a bullish outlook on domestic online sports betting growth but indicating a wait for a better entry point due to near-term pressures and competition [1] - Flutter Entertainment (FLUT) was also initiated with an Overweight rating by Wells Fargo [1] Group 2: Carnival and Cruise Line Industry - Carnival (CCL) received an Overweight rating and a price target of $37 from Wells Fargo, which views the cruise sector as the most compelling within its gaming, leisure, and lodging coverage [1] - Norwegian Cruise Line (NCLH) and Royal Caribbean (RCL) were similarly initiated with Overweight ratings by Wells Fargo [1] Group 3: Cybersecurity Companies - Berenberg initiated coverage of Okta (OKTA) with a Buy rating and a price target of $145, considering both Okta and SentinelOne (S) as misunderstood stories with potential for re-rating [1] - CrowdStrike (CRWD) was initiated with a Hold rating and a price target of $600, with Berenberg noting that the market has already priced in its position at the top of the revenue duration curve [1] - Berenberg also started coverage of Rapid7 (RPD) and Qualys (QLYS) with Hold ratings [1] Group 4: Optical Communications - Mizuho initiated coverage of Lumentum (LITE) with an Outperform rating and a price target of $290, highlighting its role as a leading supplier in optical communications and lasers, benefiting from surging demand in artificial intelligence [1]

We recently published 8 Stocks Jim Cramer Discussed & Mentioned An Important Quantum Computing Development. Flutter Entertainment plc (NYSE:FLUT) is one of the stocks Jim Cramer discussed. Flutter Entertainment plc (NYSE:FLUT) is one of the largest sports betting companies in the US. Cramer discussed the firm after Polymarket rang the NYSE’s opening bell. The event saw the online prediction market team up with mixed martial arts (MMA) organization UFC and entertainment firm TKO. In his previous comments a ...

Core Insights - The announcement of launching sports betting in December by Flutter and DraftKings indicates a strong commitment to the market, despite previous hesitations from regulators in states like Nevada [1][3]. Industry Overview - The gaming and sports betting industry is facing challenges, with Flutter and DraftKings experiencing a decline of over 30% since their highs in August [2]. - Predictions in the market are viewed as a potential existential threat by traditional land-based companies like Caesars and MGM, leading to withdrawals from states like Nevada [3]. Company Strategies - Flutter aims to secure a top three position in the sports betting market and is looking to influence policymakers to legalize sports betting in states where it is currently not permitted, which accounts for about 40% of the U.S. [5]. - The company is also focusing on engaging with tribal entities to facilitate discussions on sports betting in California, which could have significant implications for the market [5]. Market Dynamics - The current market environment has seen favorable outcomes for fans, with the house losing in NFL betting this fall, but prediction markets are dominating the conversation [6]. - Despite the sell-off, the overall estimates for the next year have only shifted by about 5%, indicating stability in the market [7]. Future Outlook - The hold rate for sportsbooks is expected to improve, and upcoming events like the World Cup could provide additional opportunities for growth [8]. - Wage growth in sports leagues such as the NFL and NBA remains strong, which could positively impact betting activities [8].

Group 1: Market Overview - Major U.S. equities indexes experienced a decline, with technology shares significantly impacting the Nasdaq, which fell nearly 2% [1] - The S&P 500 and Dow Jones Industrial Average also reported lower performance following the end of the longest federal shutdown in U.S. history [1] Group 2: Company Performance - Cisco Systems (CSCO) saw its stock surge over 4% after the company raised its full-year profit outlook [3] - The Walt Disney Co. (DIS) shares dropped 9% due to weaker-than-expected revenue, particularly in its linear TV networks business [2] - Flutter Entertainment (FLUT) stock fell 11% after the company revised its full-year revenue and adjusted EBITDA forecasts downward [2] - WEBTOON Entertainment (WBTN) shares plummeted 25% after projecting a decline in fourth-quarter revenue [2] - Sealed Air (SEE) shares soared 19% following reports of potential talks with private-equity firm Clayton Dubilier & Rice for a private acquisition [3] - Firefly Aerospace (FLY) shares jumped 17% after posting better-than-expected results and a positive full-year revenue projection [3] Group 3: Commodity and Currency Movements - Oil futures rose nearly 1%, trading just above $59 per barrel [3] - Gold futures remained relatively unchanged at around $4,200 per ounce [3] - The yield on the 10-year Treasury note increased to 4.10% [3] - The U.S. dollar weakened against the euro, pound, and yen [3] - Cryptocurrency prices were mixed, with Bitcoin trading under $101,000 [3]

Core Viewpoint - Flutter Entertainment PLC's stock is experiencing a significant decline due to mixed third-quarter results and lowered full-year guidance, despite beating earnings expectations [1] Financial Performance - Adjusted third-quarter earnings were reported at $1.64 per share, exceeding analysts' expectations of 13 cents per share [1] - Revenue for the third quarter was $3.79 billion, which fell short of estimates [1] Guidance and Market Reaction - The company lowered its full-year guidance, citing "unusually customer-friendly sports outcomes," tax adjustments in Illinois, and regulatory changes in India as contributing factors [1] - Following the announcement, eight analysts reduced their price targets, with Bernstein lowering its target from $321 to $271 [2] - Despite the negative news, the overall sentiment remains bullish, with a 12-month consensus price target of $317.32, indicating a potential 48% upside from current levels [2] Stock Performance - The stock's current decline has ended a five-day winning streak, erasing recent gains [3] - The stock is down 16.8% year-to-date, with the $212 region providing support during the current pullback [3] Options Activity - There is a notable increase in options volume, with FLUT seeing double the typical volume for the day [3] - The most popular options are the November 200 put and the November 230 call, with new positions being opened in the latter [3]