Latest news with #RushStreetInteractive
Yahoo
2 days ago
- Business
- Yahoo
DraftKings, Teladoc, Rush Street Interactive, Moderna, and Avis Budget Group Shares Are Soaring, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded, as the Bureau of Labor Statistics report revealed a resilient labor market with non-farm payrolls rising by 139,000 in May 2025, significantly above the consensus forecast of 125,000. Notably, a stable labor market often supports consumer spending, which is a key driver of economic growth, which means the report could help ease some of the recession fears that gripped markets. The data also supports the soft landing narrative, where the Fed can manage inflation toward its 2% target without significant damage to the economy. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Gaming Solutions company DraftKings (NASDAQ:DKNG) jumped 6.2%. Is now the time to buy DraftKings? Access our full analysis report here, it's free. Online Marketplace company Teladoc (NYSE:TDOC) jumped 5.7%. Is now the time to buy Teladoc? Access our full analysis report here, it's free. Gaming Solutions company Rush Street Interactive (NYSE:RSI) jumped 5.9%. Is now the time to buy Rush Street Interactive? Access our full analysis report here, it's free. Therapeutics company Moderna (NASDAQ:MRNA) jumped 5.1%. Is now the time to buy Moderna? Access our full analysis report here, it's free. Ground Transportation company Avis Budget Group (NASDAQ:CAR) jumped 5.8%. Is now the time to buy Avis Budget Group? Access our full analysis report here, it's free. DraftKings's shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 4 days ago when the stock dropped 7% on the news that the state of Illinois announced new legislation that introduces additional fees for online sports betting operators. The new fee structure is expected to significantly increase the tax rate for major players like DraftKings in Illinois, potentially reducing their profitability. DraftKings is down 1.4% since the beginning of the year, and at $35.79 per share, it is trading 33.1% below its 52-week high of $53.49 from February 2025. Investors who bought $1,000 worth of DraftKings's shares 5 years ago would now be looking at an investment worth $941.84. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
DraftKings, Teladoc, Rush Street Interactive, Moderna, and Avis Budget Group Shares Are Soaring, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded, as the Bureau of Labor Statistics report revealed a resilient labor market with non-farm payrolls rising by 139,000 in May 2025, significantly above the consensus forecast of 125,000. Notably, a stable labor market often supports consumer spending, which is a key driver of economic growth, which means the report could help ease some of the recession fears that gripped markets. The data also supports the soft landing narrative, where the Fed can manage inflation toward its 2% target without significant damage to the economy. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Gaming Solutions company DraftKings (NASDAQ:DKNG) jumped 6.2%. Is now the time to buy DraftKings? Access our full analysis report here, it's free. Online Marketplace company Teladoc (NYSE:TDOC) jumped 5.7%. Is now the time to buy Teladoc? Access our full analysis report here, it's free. Gaming Solutions company Rush Street Interactive (NYSE:RSI) jumped 5.9%. Is now the time to buy Rush Street Interactive? Access our full analysis report here, it's free. Therapeutics company Moderna (NASDAQ:MRNA) jumped 5.1%. Is now the time to buy Moderna? Access our full analysis report here, it's free. Ground Transportation company Avis Budget Group (NASDAQ:CAR) jumped 5.8%. Is now the time to buy Avis Budget Group? Access our full analysis report here, it's free. DraftKings's shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 4 days ago when the stock dropped 7% on the news that the state of Illinois announced new legislation that introduces additional fees for online sports betting operators. The new fee structure is expected to significantly increase the tax rate for major players like DraftKings in Illinois, potentially reducing their profitability. DraftKings is down 1.4% since the beginning of the year, and at $35.79 per share, it is trading 33.1% below its 52-week high of $53.49 from February 2025. Investors who bought $1,000 worth of DraftKings's shares 5 years ago would now be looking at an investment worth $941.84. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Spotting Winners: Light & Wonder (NASDAQ:LNW) And Gaming Solutions Stocks In Q1
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Light & Wonder (NASDAQ:LNW) and the rest of the gaming solutions stocks fared in Q1. Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands. The 7 gaming solutions stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 2.4%. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ:LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games. Light & Wonder reported revenues of $774 million, up 2.4% year on year. This print fell short of analysts' expectations by 4.3%. Overall, it was a softer quarter for the company with a miss of analysts' Gaming revenue estimates and a significant miss of analysts' EPS estimates. Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, 'Our R&D investment, vast array of product offerings and comprehensive content strategy continue to deliver success in game deployment and franchise expansions. We continue to see our omni-channel strategy prosper with enhanced game development and performance fueling our existing businesses, and further opportunity to extend this strategy with the pending Grover Charitable Gaming Acquisition. We remain confident in the various avenues of growth that we see for 2025 with continued execution on our robust product roadmap driving performance across the business. We are committed to executing off the strong foundation of world class talent and game portfolio that we have built for long-term success.' The stock is down 6.1% since reporting and currently trades at $87.93. Read our full report on Light & Wonder here, it's free. Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms. Rush Street Interactive reported revenues of $262.4 million, up 20.7% year on year, outperforming analysts' expectations by 0.5%. The business had a strong quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. Rush Street Interactive scored the fastest revenue growth among its peers. The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $12.69. Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free. Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems. Inspired reported revenues of $60.4 million, down 3% year on year, falling short of analysts' expectations by 10%. It was a slower quarter as it posted a miss of analysts' Leisure revenue and adjusted operating income estimates. Inspired delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 5.2% since the results and currently trades at $7.82. Read our full analysis of Inspired's results here. Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company. DraftKings reported revenues of $1.41 billion, up 19.9% year on year. This result missed analysts' expectations by 3.1%. Overall, it was a slower quarter as it also recorded full-year EBITDA guidance missing analysts' expectations. DraftKings had the weakest full-year guidance update among its peers. The company reported 4.3 million users, up 26.5% year on year. The stock is up 1.2% since reporting and currently trades at $35.84. Read our full, actionable report on DraftKings here, it's free. Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States. Churchill Downs reported revenues of $642.6 million, up 8.7% year on year. This number was in line with analysts' expectations. Zooming out, it was a mixed quarter as it also logged a decent beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is down 9.6% since reporting and currently trades at $95.08. Read our full, actionable report on Churchill Downs here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Q1 Earnings Roundup: Accel Entertainment (NYSE:ACEL) And The Rest Of The Gaming Solutions Segment
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Accel Entertainment (NYSE:ACEL) and the best and worst performers in the gaming solutions industry. Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands. The 7 gaming solutions stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 2.4%. In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results. Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues. Accel Entertainment reported revenues of $323.9 million, up 7.3% year on year. This print exceeded analysts' expectations by 1.6%. Overall, it was a strong quarter for the company with a solid beat of analysts' EPS estimates and a decent beat of analysts' video gaming terminals sold estimates. Accel CEO Andy Rubenstein commented, 'Our operating and financial momentum continues in 2025. In the first quarter, we generated our highest quarterly revenue since going public and strong Adjusted EBITDA as we expanded the number of locations we serve and increased the number of gaming terminals. In April, we opened Phase I of our casino and commenced horse racing operations at Fairmount Park Casino & Racing, which has already garnered solid customer visitation and play. This past Saturday, we hosted Fairmount Park's 'Derby Day at the Track.' Accel Entertainment scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 5.4% since reporting and currently trades at $11.34. Is now the time to buy Accel Entertainment? Access our full analysis of the earnings results here, it's free. Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms. Rush Street Interactive reported revenues of $262.4 million, up 20.7% year on year, outperforming analysts' expectations by 0.5%. The business had a strong quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Rush Street Interactive scored the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $12.50. Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it's free. With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ:LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games. Light & Wonder reported revenues of $774 million, up 2.4% year on year, falling short of analysts' expectations by 4.3%. It was a softer quarter as it posted a miss of analysts' Gaming revenue estimates. As expected, the stock is down 11.9% since the results and currently trades at $82.51. Read our full analysis of Light & Wonder's results here. Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company. DraftKings reported revenues of $1.41 billion, up 19.9% year on year. This number missed analysts' expectations by 3.1%. It was a slower quarter as it also logged full-year EBITDA guidance missing analysts' expectations. DraftKings had the weakest full-year guidance update among its peers. The company reported 4.3 million users, up 26.5% year on year. The stock is up 1.7% since reporting and currently trades at $36. Read our full, actionable report on DraftKings here, it's free. Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States. Churchill Downs reported revenues of $642.6 million, up 8.7% year on year. This result met analysts' expectations. More broadly, it was a mixed quarter as it also recorded a decent beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is down 6.6% since reporting and currently trades at $98.20. Read our full, actionable report on Churchill Downs here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
14-05-2025
- Business
- Yahoo
RSI Q1 Earnings Call: Growth in Online Casino Offsets Colombia Tax Headwinds
Online casino and sports betting company Rush Street Interactive (NYSE:RSI) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 20.7% year on year to $262.4 million. On the other hand, the company's full-year revenue guidance of $1.05 billion at the midpoint came in 0.8% below analysts' estimates. Its non-GAAP profit of $0.09 per share was 42.7% above analysts' consensus estimates. Is now the time to buy RSI? Find out in our full research report (it's free). Revenue: $262.4 million vs analyst estimates of $261 million (20.7% year-on-year growth, 0.5% beat) Adjusted EPS: $0.09 vs analyst estimates of $0.06 (42.7% beat) Adjusted EBITDA: $33.23 million vs analyst estimates of $27.1 million (12.7% margin, 22.6% beat) The company reconfirmed its revenue guidance for the full year of $1.05 billion at the midpoint EBITDA guidance for the full year is $125 million at the midpoint, in line with analyst expectations Operating Margin: 5.6%, up from 0.7% in the same quarter last year Free Cash Flow Margin: 10.9%, down from 14.1% in the same quarter last year Monthly Active Users: 203,000, up 27,000 year on year Market Capitalization: $1.16 billion Rush Street Interactive's first quarter results reflected continued expansion in its core online casino and sports betting businesses, with management emphasizing the success of player acquisition and engagement strategies. CEO Richard Schwartz attributed the quarter's performance to balanced growth in both verticals, highlighting markets like Michigan and Delaware for their substantial year-over-year gains. Management also noted that its approach of targeting high-value players while maintaining efficient marketing spend contributed to improved profitability and operating margins. Looking ahead, management reaffirmed its full-year revenue and EBITDA guidance, but cautioned that comparisons will become more challenging as the year progresses. The company expects temporary headwinds from the newly implemented value-added tax (VAT) on Colombian player deposits to continue, though this could reverse if the tax is removed. CFO Kyle Sauers explained, 'If the temporary tax goes away prior to year-end, we could see meaningful upside to both revenue and EBITDA.' Management also pointed to ongoing legislative developments in Alberta and other jurisdictions as potential contributors to future growth. Rush Street Interactive's Q1 performance was shaped by disciplined marketing investment, product differentiation, and geographic expansion. While growth was broad-based, management acknowledged the impact of temporary regulatory changes and evolving competitive dynamics in international markets. Online casino outperformance: Management cited 25% year-over-year growth in online casino, underpinned by product enhancements and cross-sell initiatives that increased player engagement and retention, especially in Michigan and New Jersey. Colombia VAT tax impact: The temporary 19% VAT on deposits in Colombia led RSI to increase bonusing in order to retain players, which compressed net revenue despite strong gross gaming revenue growth. Management noted this approach matched competitors' strategies to preserve market share. Delaware market ramp: Delaware delivered over 80% revenue growth year-over-year in its first comparable quarter since launch, with management expressing optimism about the state's long-term gross gaming revenue potential despite expectations for slower growth as comparisons toughen. Marketing efficiency gains: Marketing spend increased only 3% while monthly active users grew 17% in North America and 61% in Latin America, reflecting improved targeting and lower acquisition costs. Management attributed this to focusing resources on high-return markets and ongoing refinement of player acquisition techniques. Poker as cross-sell tool: Management launched poker in Pennsylvania as an amenity to drive engagement across other verticals. RSI plans to expand this multi-state liquidity model, using poker to attract new players and encourage cross-play with casino and sports betting products. Management expects continued growth in online casino, ongoing marketing efficiency, and regulatory developments to drive results through year-end. However, headwinds from the Colombia VAT tax and maturing markets are expected to moderate the growth rate in coming quarters. Colombia tax uncertainty: The temporary VAT on Colombian deposits is expected to remain a headwind for revenue and EBITDA until at least late spring or early summer, depending on the outcome of a constitutional court review. Management said the removal of this tax would be a 'meaningful driver' for both metrics. Market maturation effects: As new markets like Delaware lap their launch period, management anticipates slower year-over-year growth rates, which will affect reported results for the remainder of the year. However, established iCasino states remain key contributors. Legislative expansion opportunities: Management is closely monitoring legislative progress in Alberta and other North American jurisdictions, indicating that successful legalization efforts could provide new growth avenues in 2026 and beyond. Bernie McTernan (Needham & Company): Asked if RSI believes it is gaining market share in Colombia despite absorbing the VAT tax. Management stated that while exact figures are unavailable, their growth in gross gaming revenue suggests possible share gains. Jordan Bender (Citizens): Inquired about operational adjustments in Colombia to improve net gaming revenue. Management described ongoing refinements, such as reducing deposit turnover and monitoring competitor bonusing strategies. Jed Kelly (Oppenheimer): Pressed for details on the sustainability of marketing leverage given increased competition. CEO Richard Schwartz emphasized the company's focus on user experience and product differentiation to maintain acquisition efficiency. Chad Beynon (Macquarie): Sought clarification on the growth outlook for Delaware and other international markets. Management expects Delaware growth rates to moderate but sees long-term upside, while Mexico continues to ramp ahead of initial expectations. Mike Hickey (Benchmark Company): Asked how cross-sell between casino and sports betting is being promoted. Management highlighted new features that ease player movement between verticals, though they did not disclose the exact proportion of dual-vertical users. In the months ahead, the StockStory team will be watching (1) the resolution of Colombia's temporary VAT tax and its impact on net revenue, (2) signs of continued marketing efficiency and player growth as markets mature, and (3) legislative developments in Alberta and other North American jurisdictions that could expand the company's addressable market. The pace at which poker liquidity expands across states and the effectiveness of cross-sell initiatives will also serve as important indicators. Rush Street Interactive currently trades at a forward P/E ratio of 37.2×. Should you load up, cash out, or stay put? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
