Tara Moore/DigitalVision via Getty Images Listen below or on the go on Apple Podcasts and Spotify Jobs data and other macro factors (0:25) Economic picture holding steady (3:00) AI expansions, tech earnings (5:25) Fed update, Walmart valuation, earnings coming (10:30) Transcript Rena Sherbill: It's Friday the 13th, it's Wall Street Roundup. Welcome back, Brian Stewart, Seeking Alpha's Director of News. Brian Stewart: Great to be here. Rena Sherbill: Always great to have you talk to us. What are you l ...

Red Rock Resorts (NasdaqGS:RRR) Q4 2025 Earnings call February 10, 2026 04:30 PM ET Company ParticipantsChad Beynon - Managing Director and Head of U.S. ResearchLorenzo Fertitta - Vice ChairmanScott Kreeger - PresidentStephen Cootey - EVP, CFO, and TreasurerStephen Grambling - Managing DirectorSteve Wieczynski - Managing DirectorZachary Silverberg - VP of Equity ResearchConference Call ParticipantsBarry Jonas - Managing Director and Senior Equity Research AnalystBen Chaiken - Equity Research AnalystBrandt M ...

I N V E S T O R P R E S E N T A T I O N PRIVATE & CONFIDENTIAL DISCLAIMER This presentation contains forward-looking statements, that reflect current views of Red Rock Resorts, Inc. (the "Company") with respect to, among other things, our operations and financial performance, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implie ...

The Super Bowl is supposed to be the highlight of the calendar for gambling companies. This year, though, a cloud has descended over the industry as the big game approached. The stock of Flutter Entertainment Plc, which runs one of the most popular US gambling apps, FanDuel, is on an eight week skid, the longest in 23 years. It’s main competitor, DraftKings, is trading around the lowest levels since 2023, and is down more than 60% from its all-time high five years ago. Most Read from Bloomberg The mat ...

Joining us now in San Francisco is Contessa Brewer along with DraftKing CEO Jason Robbins. Contessa Sarah, thank you very much for that. Look, we're looking in the gambling industry to set another new record for Super Bowl handler, the amount wager, the industry thinks $1.7% billion. How's it looking? Are you expecting another record this year? >> Well, we're expecting really big things. I don't know if it'll be another record or not. We're in our quiet period, as you know, so have to be careful on that. Bu ...

The company's BetMGM joint venture reports strong revenue and earnings growth in the fourth quarter. ...

Regulatory Landscape - The crypto market structure bill is currently a focal point, with a significant debate over whether crypto companies can offer rewards or yield on stablecoin balances [1][6] - The banking lobby is perceived to have a strong influence, potentially hindering the crypto industry's ability to innovate and provide consumer benefits [1][5][6] Banking Dynamics - Community banks are effectively lobbying against crypto innovations by claiming potential deposit flight, despite evidence suggesting that deposits are generally stable [2][3][4] - Major banks like JPMorgan and Wells Fargo are criticized for offering low interest rates on savings accounts while profiting from higher rates at the Federal Reserve [4] Political Implications - The political landscape surrounding crypto is described as contentious, with both parties seemingly siding with large banks over consumer interests [5][9] - There is a sense of urgency for lawmakers to pass the crypto bill to avoid appearing weak, especially with significant financial backing from crypto advocates [8][9] Prediction Markets - The CFTC is exploring regulations for prediction markets, which are growing rapidly and are seen as a new form of trading platform [10][11] - There is a competitive landscape emerging in prediction markets, particularly influenced by the sports betting industry, which is lobbying for fair treatment compared to new entrants [12][17] Market Opportunities - The prediction market sector is attracting significant investment, with firms like Galaxy Digital exploring opportunities in this space [13][14] - The potential for market-making and liquidity provision in prediction markets is highlighted, indicating a growing interest from institutional players [16][17]

Group 1 - Butler National Corporation (BUKS) operates in the aerospace and defense industries, with a unique niche that also includes a gambling business [1] - The company is analyzed by an experienced aerospace, defense, and airline analyst who aims to identify investment opportunities within these sectors [1] - The analyst provides data-informed analysis to contextualize industry developments and their potential impact on investment theses [1] Group 2 - The investing group associated with the analyst offers direct access to data analytics monitors, enhancing the investment research process [1]

Core Insights - The legalization of sports betting in the U.S. has led to significant market growth, with over $150 billion wagered in 2025, but profitability remains a challenge for many operators [1] Company Summaries 1. DraftKings - DraftKings is the closest to achieving profitability in the digital sports betting space, posting $0.16 in annual EPS in 2025, marking its first year of profitability after five years of losses [12] - Revenue reached $5.46 billion, with quarterly earnings growth of 185% year-over-year, indicating strong operational performance [12] - The stock has seen a 26% decline over the past year, but analysts project a fair value of $45, suggesting a 47% upside if the company can maintain its profitability [13][14] 2. Flutter Entertainment - Flutter Entertainment, the parent company of FanDuel, is the largest operator in the group with a market cap of $30.6 billion and revenue of $15.4 billion [10] - The company reported $3.82 in annual EPS for 2025, down 37% from the previous year, but remains profitable [10] - Analysts see a fair value of $285 for the stock, implying a 63% upside, supported by its global diversification and established profitability [11] 3. Caesars Entertainment - Caesars operates over 50 casino properties and runs Caesars Sportsbook, but reported an annual EPS of -$0.95 in 2025, despite an improvement from -$1.26 in 2024 [7] - The stock has dropped 35% over the past year, trading at $22.37, with analysts maintaining a target of $32, indicating a potential 43% upside if the company can stabilize its digital losses [8] 4. MGM Resorts - MGM Resorts is the only company on the list with a positive one-year performance, up 3.7%, generating $17.3 billion in revenue [5] - The profit margin is low at 0.4%, and earnings fell 70% year-over-year in Q3 2025, indicating operational stress [6] - The stock trades near its 200-day moving average at $34.10, with a modest upside to the $42 analyst target [6] 5. Penn Entertainment - Penn Entertainment reported an annual loss of -$0.59 in 2025, an improvement from -$1.62 in 2024, but remains unprofitable [3] - The stock trades at 0.3x sales and below book value, suggesting market skepticism regarding its ESPN partnership [4] - Analysts have set a target of $19 for the stock, implying a 33% upside, but the company needs to demonstrate its ability to convert ESPN's reach into profitable customer acquisition [4]

Core Insights - The sin stock market consists of companies in sectors considered unethical or socially undesirable, including alcohol, tobacco, gambling, weapons, and cannabis [1] - Sin stocks are often excluded by institutional and ESG-focused investors, leading to lower valuations and higher dividend yields, which can present opportunities for return-focused investors [2] Investment Characteristics - Sin stocks generate stable cash flows due to consistent demand, making them attractive for investors seeking defensive exposure [3] - These companies often trade at lower valuation multiples compared to the broader market, while strong cash generation allows for above-average dividend yields [4] - Sin stock companies can pass on cost increases through price hikes due to high barriers to entry, protecting margins and supporting long-term profitability [5] - Sin stocks exhibit low correlation with economic cycles, providing useful portfolio diversification [6] Investor Mindset - Investors in sin stocks prioritize risk-adjusted returns, income stability, and diversification, weighing ethical concerns against financial objectives [7] Sector Trends - Alcohol companies like Diageo benefit from premiumization and steady global demand, while tobacco firms like Philip Morris are transitioning to reduced-risk products [9] - Gambling stocks are experiencing growth from online betting and digital gaming legalization, while weapons stocks are influenced by geopolitical tensions [10] Company Highlights - Boyd Gaming's appeal lies in its diversified gaming portfolio and disciplined capital allocation, with a focus on operational efficiency and customer loyalty [12] - Universal Corporation reported 3% revenue growth and an 18% increase in operating income in the first half of fiscal 2026, supported by strong demand dynamics [14] - Constellation Brands maintains a dominant position in the U.S. high-end beer market, with strategies that emphasize pricing discipline and cost-saving initiatives [16]