- Summary:
- Flutter Entertainment share price is set to rally after MGM rumoured interest of Entain, the gambling company that owns Ladbrokes.
The Flutter Entertainment share price is set to jump today, continuing the 60% gains made last year. The shares bounced back by more than 200% from its 2020 low of 4,925p and settled at 15,165p.
What happened: The online gambling industry did well in 2020 as more people shifted to the sector. This is after the coronavirus pandemic ravaged the physical casino and betting industries.
At the same time, dealmaking continued in the sector. In 2018, GVC Holdings, now known as Entain Group bought Ladbrokes in a $5 billion. Over the weekend, the Wall Street Journal reported that MGM Resorts, which is majorly owned by IAC/Interactive had made plans to buy the company.
Last year, Caesars International also bought UK company, William Hill in a $4 billion while Draftkings went public in the United States. Its shares rose by more than 340% while that of Penn Nationa Gaming shares rose by more than 240%.
Why this matters: Flutter Entertainment is one of the leading brands in gaming in the UK. It owns brands like PaddyPower, Betfair, Fanduel, and Sky Bets. Therefore, Flutter share price will possibly rise today as investors place their hopes in more consolidation in the industry.
Also, shares of the company, the best performer in the FTSE 100 in 2020 will rise because of the current momentum.
Flutter Entertainment Share Price forecast
What next for Flutter Share Price: On the daily chart, we see that Flutter ended last week at 15,165p, which was slightly below the yearly high of 15,815p. The shares remains above the 200-day and 50-day exponential moving averages. It is also along the upper side of the rising channel that is shown in pink. Therefore, FLTR share price will possibly continue rallying as bulls aim for the next resistance at 16,000p.
Flutter Entertainment Share Price Technical Chart
