Zona de Azar USA – Flutter’s FanDuel Stock Debuts on NYSE

USA.- January 30th 2024 www.zonadeazar.com Investors now have a fresh avenue for engaging in the US sports betting and iGaming market, as FanDuel stock becomes available through its parent company, Flutter, on the New York Stock Exchange.

Flutter had been considering a dual listing in the US and London for several years and gained significant shareholder approval for the listing in April 2023.

Observers in the gaming industry, both in the US and internationally, will closely watch the performance of FanDuel’s parent company in terms of trading volume and interest. Additionally, its impact on other listed companies, such as DraftKings, will be a subject of keen scrutiny.

As of 3 pm Eastern, Flutter’s stock (FLUT) opened at $205 and showed a 0.93% increase to $206.90.

The Potential Influence of Flutter’s Market Cap: Flutter’s market capitalization exceeding $36 billion has the potential to attract larger institutional investors who were previously limited in their options within the gaming industry.

Chad Beynon, head of US research for Macquarie, notes that Flutter’s listing could bring attention to US gaming stocks, potentially improving valuations and multiples across the industry. This effect might extend to smaller companies, offering them increased institutional investment opportunities.

Impact on DraftKings and Beyond: FanDuel’s stock listing has implications for DraftKings, a prominent name among US investors in iGaming. Flutter offers more than just a pure-play investment in online betting, representing the leading US online operator in terms of revenue, market share, and profitability. With a diverse portfolio, including well-known brands like Betfair and Paddy Power, Flutter’s US revenue accounted for only 38% of its total revenue in 2023.

While some speculate that Flutter’s positive influence could lead to increased investment opportunities, including potential spinoffs for companies like Caesars and MGM Resorts, opinions on preference vary. Dan Politzer of Wells Fargo, for example, still favors DraftKings over Flutter, emphasizing operating momentum and anticipated profitability in 2024.

Investor Learning Curve: Investors looking to navigate this evolving landscape should recognize that transitioning from DraftKings to Flutter involves understanding a more diversified revenue base. Flutter’s portfolio encompasses various global brands such as Betfair, PokerStars, and Sportsbet, requiring investors to familiarize themselves with the broader scope of the company’s operations.

In summary, the debut of FanDuel’s stock through Flutter on the NYSE marks a significant development in the realm of US sports betting investments, with potential ramifications for industry dynamics and investment strategies.

Edited by: @MaiaDigital www.zonadeazar.com