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Jim Cramer Says Flutter Entertainment “Reported What I Call a Mixed Quarter With Soft Revenue”

Flutter Entertainment plc (NYSE:FLUT) is one of the stocks Jim Cramer mentioned in his latest comments. Cramer highlighted the company’s earnings during the episode and said:

“What do we make of these numbers from Flutter Entertainment, the parent company of FanDuel? After the close, this online sports book reported what I call a mixed quarter with soft revenue, thanks to some adverse gambling outcomes, but also higher than expected earnings. At the same time, Flutter announced that it’s moving into the predictions market, much like we heard from DraftKings last week. Their platform, FanDuel Predicts, is launching next month in partnership with the CME Group.”

Flutter Entertainment plc (NYSE:FLUT) operates sports betting and gaming platforms. The company provides online sportsbooks, casino games, poker, lottery products, and fantasy sports. While discussing the sports betting space during the July 9 episode, Cramer mentioned the company and said:

“Take the sports betting space, one of the fastest-growing industries in America over the past few years, dominated by DraftKings and Flutter Entertainment, the parent of FanDuel. There was an obscure provision in the Big Beautiful Bill added late in the process that seems like it could impact these companies significantly… Once the bill was signed into law by President Trump on the 4th of July, people finally started asking what this new rule means for the gaming industry, especially the popular online sportsbooks like DraftKings and FanDuel that dominate the business… But you know what? Since the Senate unveiled its version of the budget bill in mid-June, the version that included the change to the gambling taxes, the stocks of DraftKings and Flutter have been roaring…

Flutter was up 13% and they’re both basically flat in July when people started focusing on this issue. So what the heck is happening here with this taxation thing?… Basically, the new taxation is very bad for professional gamblers or anyone who knows how to win reliably. But those are the last people FanDuel or DraftKings want. In fact, if the budget bill puts these people out of business, it might actually be a good thing for the online sportsbooks… Of course, there’s another reason why Wall Street doesn’t seem to be worried about this change in taxation for gambling winnings. There’s a very good chance it might be reversed…

DraftKings and Flutter haven’t even bothered to push back against the new provision. And historically, these companies are very, very vocal about any legislation that hurts their business. I don’t think they’re shedding any tears over this tax provision that drives away gamblers who win too often. We reached out to both DraftKings and Flutter Entertainment for a comment here… So far, Flutter hasn’t gotten back to us…

Ultimately, I think this is something we need to watch, but it doesn’t change my bullish attitude toward DraftKings and Flutter. The thesis here is very simple: These two companies have emerged as an effective duopoly in online sports betting… This law just makes the moat even bigger for them. There’s building growth to these stories because of the gradual state-by-state rollout of legal sports betting…

Also, because the industry is a lot less competitive than it used to be, DraftKings and Flutter no longer need to offer big incentives to draw new customers, making them more profitable… Here’s the bottom line: I still like DraftKings and Flutter, but more important, this is just one tiny example of the work that’s being done all across Wall Street to figure out the impact of this massive new budget bill. Some of it’s straightforward, but like we saw with sports betting, sometimes these new rules might do the opposite of what you’d expect.”

While we acknowledge the risk and potential of FLUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLUT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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