Opinions
Stan Wong
Flutter Entertainment
FLTR-L
PARTIAL BUY
Apr 10, 2025
Stock price when the opinion was issued
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International sports betting & gaming business (Poker Stars etc.).
$12 billion in revenues.
Total market for sports betting and gaming is growing.
Market share difficult to gain.
Challenging business model with uncertain regulation.
Consumer protection regulation & money laundering also a concern.
Would not recommend investing.
Shares have tumbled. Last week, they reported a good quarter though a light full-year forecast, because consumer confidence has slid due to tariffs. They have 43% market share in the US. They grew revenue in the US by 32% with 19% total revenue growth. They manage costs. There's room to grow with states like California and Texas still barring sports betting which is popular because it's a cheap form of entertainment, he thinks.
Good question whether consumers would spend less for online gaming during a slowdown. Probably, but he feels demand is somewhat inelastic. Share price up and down, lots of volatility. Dropped below 200-day, but now picked back up. 200-week MA moving higher. Doesn't look bad from technical perspective.
Valuation not cheap, but you're buying it for the growth rate, which is 33% going forward. Online gaming is a growing industry. Higher beta, so a very small position only in your portfolio.