Stock Market Today: Dow Slips After CPI Inflation Surprise | Investor's Business DailyBREAKING: [Core CPI Inflation Falls To 2.5%, Lowest Since 2021]---The Dow Jones Industrial Average and other major stock indexes turned slightly lower Friday morning, unable to gain traction from the cooler-than-expected January consumer price index inflation report. On the stock market today, DraftKings (DKNG) plunged after the company's earnings report while investors sent Applied Materials (AMAT) shares soaring. The Dow ...

Core Viewpoint - Rivalry Corp. has announced a significant reduction in its operating activities as it evaluates strategic alternatives for its assets and operations [1][2]. Group 1: Operational Changes - The Board of Directors has decided to materially reduce the scale of operations due to recent performance volatility [2]. - The company is implementing substantial cost reductions, which include a significant workforce reduction and decreased operating expenditures [3]. - Player activity on the platform has been paused, and the company is facilitating player withdrawals in the ordinary course [3]. Group 2: Strategic Alternatives - Rivalry is engaged in discussions with third parties regarding potential transactions while assessing a range of strategic alternatives [2][3]. - Potential alternatives may include asset-level transactions, corporate transactions, restructuring initiatives, or other strategic outcomes [3]. Group 3: Regulatory and Licensing Information - Rivalry Corp. wholly owns and operates Rivalry Limited, which offers regulated online wagering on esports, traditional sports, and casino games [5]. - Rivalry Limited has held an Isle of Man license since 2018 and has an internet gaming registration in Ontario [5].

FY 2025 EARNINGS PRESENTATION February 12, 2026 | 1 Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about DraftKings Inc. ("DraftKings", the "Company", "we", "us", and "our") and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fac ...

Group 1 - DraftKings Inc. is currently facing challenges due to a lack of consolidation in the sports betting industry, particularly in key states like California, Florida, and Texas, which are crucial for its growth [1][3] - The stock is perceived as undervalued at its current price, but without regulatory changes in these states, the company may struggle to attract new customers and grow its account base [1][3] - The company is categorized as being "in the wilderness" until significant changes occur in the regulatory landscape, indicating uncertainty in its future performance [3] Group 2 - DraftKings operates in the digital sports entertainment and gaming sector, offering online sports betting, daily fantasy sports, and various iGaming products [3] - There is a belief that consolidation within the industry could potentially improve DraftKings' market position and stock performance [1][3]

Company Overview - Gambling.com Group Limited (NASDAQ:GAMB) is a performance marketing and sports betting media company that provides digital customer acquisition services to online gambling operators. The company operates primarily in Dublin, Ireland, with a significant presence in Charlotte, North Carolina [4]. Financial Performance - In the third quarter of 2025, Gambling.com Group achieved record revenue of $39 million, representing a 21% year-over-year increase. Adjusted EBITDA rose by 3% to $13 million [3]. - The company raised its full-year guidance, projecting approximately $165 million in revenue and $58 million in adjusted EBITDA, which indicates year-over-year growth of 30% and 19%, respectively [3]. Market Position and Outlook - The company is well-positioned to benefit from the ongoing legalization and expansion of online sports betting. Its asset-light model provides flexibility to navigate potential volatility in 2026 [4]. - Analyst Mike Hickey from Benchmark lowered the price target for Gambling.com Group to $7 from $8 while maintaining a Buy rating, reflecting a cautious outlook on the company's 2026 earnings trajectory rather than a decline in near-term fundamentals [1].

Core Insights - DraftKings Inc. (DKNG) is set to report its fourth-quarter 2025 results on February 12, with an earnings miss of 8.3% in the last quarter [2] Financial Estimates - The Zacks Consensus Estimate for fourth-quarter adjusted earnings per share has risen to 50 cents from 45 cents over the past 30 days, compared to an adjusted loss per share of 28 cents in the same quarter last year [3] - Revenue consensus is projected at $1.99 billion, reflecting a 42.9% year-over-year increase [3] Revenue Drivers - Strong sportsbook engagement, particularly around the NFL and early NBA seasons, is expected to have significantly contributed to fourth-quarter revenues, with increased customer activity and improved retention [4] - Continued acceleration in iGaming growth, driven by more active users and higher spending per customer, is likely to have provided a more stable revenue stream [5] - Marketing leverage and brand partnerships, especially with ESPN and NBCUniversal, have enhanced customer engagement and brand reach without substantial additional spending [6] Earnings Performance - Structural margin improvements, driven by a richer bet mix and disciplined promotional spending, are anticipated to have positively impacted earnings [7] - Operating leverage from previous investments in technology and customer management is expected to have limited cost growth despite increased volumes [7] Earnings Prediction Model - The current model does not predict an earnings beat for DraftKings, as it lacks a positive Earnings ESP and holds a Zacks Rank of 4 (Sell) [8][10]

Core Viewpoint - Shares of Flutter Entertainment plc have returned to 2020 levels, losing three years of gains, reflecting a significant decline in investor confidence in the online gambling sector [3][4]. Group 1: Reasons for the Decline - The decline in Flutter's stock is attributed to increased competition from pure prediction market players, raising concerns about margin pressure and operational shifts in betting markets [4]. - There is ongoing frustration regarding Flutter's path to consistent profitability, with investors growing impatient over the lack of clear timelines for earnings leverage despite strong top-line growth [5]. - The competitive landscape remains intense, with rivals like DraftKings Inc. aggressively spending, which keeps acquisition costs high and limits margin expansion potential [6]. Group 2: Potential Recovery Indicators - Flutter's shares have dropped over 50% from last summer's highs, but the stock is now considered deeply oversold and near long-term support levels, which historically attract buyers [8]. - Analysts suggest that the selloff may have been excessive relative to the company's long-term opportunities, with some predicting a potential upside of up to 50% [8]. - The current risk/reward profile appears attractive, with technical indicators suggesting that selling pressure may soon exhaust itself [9].

Core Insights - DraftKings Inc. has announced an expanded partnership with Crypto.com to enhance its DraftKings Predictions platform by adding new prediction market contracts [1] - The collaboration aims to integrate regulated markets from Crypto.com's derivatives exchange, expanding the range of sports and events available for prediction [2] Group 1: Partnership Details - The partnership introduces new player-specific NFL and NBA markets, as well as contracts for boxing, golf, soccer, mixed martial arts, tennis, and the Olympic Games [1][2] - Future categories for prediction markets may include entertainment and political events, broadening the scope of the platform [1][3] Group 2: Platform Features - Eligible users can access the DraftKings Predictions platform through a standalone app or via the website, which includes tools for responsible trading [4] - The platform previously offered a limited selection of sports alongside financial event contracts from CME Group, indicating a significant expansion in offerings [2][3]

Core Viewpoint - Flutter is recognized as one of the largest online gambling operators globally, with significant market shares in both sports betting and iGaming across established markets and emerging regulated markets [1] Group 1: Market Position - Flutter holds leading positions in mature markets such as the UK, Ireland, Australia, and Italy [1] - The company is also expanding its presence in faster-growing regulated markets, notably the United States and Brazil [1] Group 2: Growth Potential - The US market represents a significant opportunity for Flutter, indicating potential for future growth [1]

BetMGM Fiscal Year and Fourth Quarter 2025 Financial Update Summary Company Overview - **Company**: BetMGM - **Fiscal Year**: 2025 - **Key Executives**: Adam Greenblatt (CEO), Gary Deutsch (CFO) Key Financial Highlights - **Net Revenue**: $2.8 billion, up 33% year-on-year [4] - **Q4 Net Revenue**: $780 million, up 39% year-on-year [4] - **EBITDA**: $220 million for the full year, up nearly $500 million year-on-year [6] - **Q4 EBITDA**: $71 million [6] - **Cash Distribution to Parents**: $270 million, exceeding guidance of $200 million [6][31] Business Segments Performance iGaming - **Revenue Growth**: 24% year-on-year, with Q4 revenue up 18% [5][10] - **Contribution**: Over $500 million [5] - **Player Engagement**: Average monthly actives increased by 24%, with players engaging for 14% more days [11] - **Game Library**: Over 7,000 titles, adding 1,500 titles since last year [12] Online Sports Betting (OSB) - **Revenue Growth**: 63% year-on-year, with Q4 revenue reaching $279 million, nearly double from the previous year [14][15] - **Contribution**: Over $200 million [15] - **Player Metrics**: Active player days increased by 6%, with a 12% increase in average bets placed [15] - **NGR per Active Player**: Increased by 77% year-on-year [27] Omni-Channel Strategy - **Nevada Performance**: Combined digital and retail sports handle grew 26% year-on-year, with net revenue growth of 65% [19] - **Digital Integration**: Seamless experience for players transitioning between states [20][22] - **Live Dealer Growth**: Fastest-growing live dealer business in the U.S. [13] Strategic Initiatives - **Marketing Campaign**: "Make It Legendary" campaign launched, contributing to increased player engagement [5] - **New Market Launches**: Online sports launched in Missouri, marking the 30th jurisdiction of legal operations [5] - **Future Plans**: Anticipated launch of iGaming and OSB in Alberta in 2026 [8] 2026 Outlook - **Revenue Guidance**: Expected net revenue of $3.1 billion to $3.2 billion [8] - **Adjusted EBITDA Guidance**: Projected range of $300 million to $350 million [8] - **Parent Fees**: Introduction of parent fees tied to joint venture agreement, expected to be 15%-20% of adjusted EBITDA [9][36] Market Dynamics and Risks - **Regulatory Concerns**: Ongoing discussions regarding prediction markets and their impact on the regulated gaming environment [40][41] - **Competitive Landscape**: Focus on expanding iGaming states as a key growth driver [74] Additional Insights - **Player Retention**: Improved player management through real-time integration with MGM's loyalty program [60] - **Future Growth Potential**: Opportunities to double the size of the digital business in Nevada [50] This summary encapsulates the key points from BetMGM's fiscal year and fourth quarter 2025 financial update, highlighting the company's strong performance, strategic initiatives, and outlook for future growth.