Flutter shares fall 126 in London after tepid US forecast

Flutter shares fall 126 in London after tepid US forecast

Flutter Entertainment Shares Decline Amid Revised US Growth Outlook

Flutter Entertainment (NYSE: FLUT) shares fell sharply in early 2026, reflecting renewed concerns over slowing growth in the U.S. online sports betting market and broader sector volatility. The stock closed at $125.17, marking a 33.58% decline in one month and a 58.11% total shareholder return loss over the past year. The selloff followed downward revisions from major analysts and a weak revenue forecast from rival DraftKings (DKNG), which cited tax challenges and decelerating customer acquisition.

The market's reaction highlights a shift in sentiment toward the online gambling sector. Flutter, parent company of FanDuel, holds a dominant 47% U.S. market share but faces pressure from rising regulatory scrutiny. Despite reporting $15.4 billion in annual revenue, the company posted a net loss of $221 million, raising questions about its path to profitability. Analysts note structural cost efficiencies, such as reduced sales and marketing expenses and renegotiated market access agreements, could improve margins. However, $8.5 billion in net debt and regulatory risks remain key headwinds.

Valuation debates center on Flutter's potential. Simply Wall St estimates a fair value of $274.56, implying a 115% upside, based on projected margin expansion and free cash flow growth. Conversely, TIKR's Valuation Model suggests a higher target of $436, citing Flutter's global diversification and disciplined approach to U.S. market competition. Both models emphasize the company's international operations, which grew 21% year-over-year in 2025, as a stabilizing factor amid U.S. sector turbulence.

Investors remain divided on whether the recent selloff overcorrects or appropriately prices in growth challenges. While Flutter's leadership position and innovation—such as its upcoming "FanDuel Predict" product—offer long-term potential, near-term risks from regulatory shifts and debt management could test investor confidence.

Simply Wall St analysis highlights structural cost efficiencies and valuation gaps but cautions on regulatory and debt risks.
TIKR underscores Flutter's global scale and disciplined operations versus peers like DraftKings.