EURGBP
The Flutter share price rose on Thursday as investors reacted to the relatively strong quarterly results by Entain. The FLTR stock rose to 13,480p while the Entain share price spiked by more than 1.6% to 1,837p.
Flutter Entertainment is a leading sports betting and gambling franchise headquartered in London. The company owns popular brands like PaddyPower, BetFair, Fanduel, and FoxBet, among others. It also owns PokerStars, the biggest online poker website in the world. The poker site is well-rated by Online Casino Zed.
The stock is rising after Entain reported strong quarterly results. The company said that its online gaming revenue rose by 22% in the three months to June. That was the 22nd straight quarter with double-digit growth. It also boosted its forward guidance, saying that its annual core earnings will be between 850 million pounds and 900 million pounds. That was better than the median estimate of 843 million pounds.
Therefore, analysts believe that the results signal that other companies like Flutter will also do relatively well. In a note this week, analysts at Deutsche Bank said that they expect that the Flutter share price will bounce back later this year. They upgraded it from hold to buy. They wrote that they expect the firm to benefit from the strong comeback of sports and the surging momentum in the United States and Australia. Still, they expect that its poker business will struggle.
Flutter faces significant challenges ahead. For example, the company is being pressed to pay $1.3 billion by Kentucky. The litigation is about online poker litigation. Also, there is a lack of clarity of how the company plans to handle Fanduel. Recently, it said that it was considering spinning it out as a public company.
The daily chart shows that the Flutter share price has struggled this year. It is about 22% below its highest point this year. The stock has also declined below the ascending trendline shown in blue. It is also consolidating around the 50-day Exponential Moving Average (EMA) and the 28-day VWMA. The stock also seems to be forming a broadening wedge pattern. This pattern is usually a bullish signal in price action analysis.
Therefore, while the near term outlook is neutral, there is a possibility that the stock will break out higher in the next few weeks. It will need to move above the confirmation level of 14,380p. On the flip side, a drop below the support at 13,000p will invalidate this prediction.
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