#2 - Flutter Entertainment (NYSE:FLUT)
Flutter Entertainment (OTCMKTS:PDYPY) is the parent company of FanDuel, which makes up the other part of what is, for now, a duopoly in the sports betting sector. As some investors may remember, FanDuel attempted to merge with DraftKings in 2018. However, the Federal Trade Commission (FTC) rejected that plan. That led FanDuel to the UK company, Paddy Power, which is now Flutter Entertainment.
Currently, FanDuel boasts an approximately 40% market share. And by year’s end, FanDuel expects to have an online gaming footprint in 14 states with a strictly iGaming presence in four states. If those projections pan out, it would put the company on pace to generate 50% more revenue than DraftKings.
PDYPY stock is up around 10% early in 2021. This has been disappointing to investors in Flutter Entertainment. And that is leading to some speculation that Flutter may be looking to spin off FanDuel as a separate entity. This would be similar to when DraftKings went public as a separate entity in 2019. However, there appear to be many hurdles to clear before such a move could happen.
About Flutter Entertainment
Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting.
Read More - Current Price
- $196.38
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $87.98 (55.2% Downside)
