What Happened?
Shares of global online betting powerhouse Flutter Entertainment (NASDAQ:FLUT) jumped 3.1% in the pre-market session after Citi analyst Monique Pollard upgraded the stock from a Neutral rating to a Buy rating.
Citi analyst Monique Pollard upgraded the shares in research carried by StreetInsider, marking a notable reversal from a former skeptic who double-downgraded Flutter to Sell in April before stepping to Neutral in August. In an analysis cited by TipRanks, Pollard had observed that consensus expectations required a substantial reset, which materialized after management lowered mid-term projections.
Severe selling pressure pushed Flutter down over 65% year to date to a 52-week low of $73.50, exacerbated by the recent halt of its Brazilian operations. With international headwinds and estimate cuts already depressing the multiple, the upgrade reflects a view that downside risks are largely priced in alongside steady U.S. market share for FanDuel.
After the initial pop, the shares cooled down to $76.44, up 0.2% from the previous close.
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What Is The Market Telling Us
Flutter Entertainment’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 14.6% on the news that the company reported disappointing fourth-quarter 2025 results that missed Wall Street's expectations on several key metrics.
The global online betting powerhouse reported revenue of $4.74 billion, which, despite growing 24.9% year-over-year, fell short of analyst estimates. More concerning for investors was the company's profitability, as it posted a GAAP loss of $0.05 per share, a significant miss compared to consensus estimates and a sharp reversal from a profit of $0.45 in the same quarter last year. Other key metrics also disappointed, with adjusted EBITDA missing expectations. Profitability was squeezed, as the company's operating margin declined to 5.4% from 7.4% a year ago, and its free cash flow margin fell sharply to 2.9% from 12.1%. Overall, the quarterly report showed a company struggling with profitability despite strong sales growth, leading to a negative reaction from investors.
Flutter Entertainment is down 65% since the beginning of the year, and at $76.44 per share, it is trading 69.7% below its 52-week high of $252.34 from October 2025. Investors who bought $1,000 worth of Flutter Entertainment’s shares 5 years ago would now be looking at only $374.57.
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