After a monumental rise in the past two quarters, shares of Boyd Gaming (NYSE: BYD) have earned nearly $ 3.5 billion in market capitalization. As market players tire of the broader momentum in the sports betting industry, the actions of Boyd’s rivals including Penn National Gaming and Draft Kings have observed a correction. FanDuel’s success in the market is integral to Boyd’s valuation, but given the strong competitive rivalry, Boyd’s low market presence and high valuation seems like the right time to turn a profit. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data, Boyd Gaming’s stock is expected to move 4.6% over the next month (twenty-one trading days) after experiencing a decrease of 5% in the past. week (five trading days). Notably, the stock is very likely to perform in line with the larger markets.
But how would those numbers change if you wanted to hold Boyd Gaming shares for a longer or shorter period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to Test Boyd Gaming Stocks Rise Odds After Fall. You can test the chances of recovery over different time intervals of a quarter, a month, or even a single day!
In a recent press release, Flutter Entertainment clarified FanDuel’s partial listing in the United States by pointing out that the matter is under review, but no decision has yet been made. FanDuel is the most popular sports betting app in the United States and Boyd Gaming (NYSE: BYD) holds 5% of the capital there. As speculation builds on Flutter Entertainment’s FanDuel spin-off (Flutter owns a 95% stake in FanDuel), Trefis believes picking Boyd stocks ahead of the decision is unlikely to bring any big gains. We highlight historical trends in Boyd Gaming’s revenue, earnings and share price in an interactive dashboard analysis, Buy or Fear Boyd Gaming Stock?
FanDuel said a 40% share of the sports betting market in the United States and total revenue of $ 967 million in 2020 – far higher than $ 614 million for its competitor Draft Kings. After the acquisition of FanDuel in July 2018, Flutter’s market capitalization jumped by $ 20 billion. While the impact of other acquisitions is also included, but comparing it to Draft Kings’ $ 28 billion valuation, Flutter stock has a reasonable edge. However, Boyd Gaming’s $ 3 Billion Market Value Gain Since February 2020 Indicates FanDuel’s Valuation At Around $ 60 Billion [$3 billion x (95%/5%) = $57 billion] – a number too high to make a short-term bet.
Actions of Boyd Gaming (NYSE: BYD) have gained 78% in the last quarter, supported by broader momentum in sports betting and the iGaming industry. By acquiring a 5% stake in FanDuel, Boyd Gaming entered into a strategic agreement to develop its sports betting application, B Connected, in 2018. In exchange, FanDuel sports betting will have market access in states where Boyd is licensed to Thu Although Boyd does not bring back the handful of sports betting, the title has the potential to earn more due to the ongoing recovery of all sports betting titles. We highlight historical trends in Boyd Gaming’s revenue, earnings and share price in an interactive dashboard analysis, Why has Boyd Gaming Stock gained 72% in one year?
The pandemic has taken its toll on Boyd Gaming’s fundamentals
Boyd Gaming’s revenue fell 38% (year-on-year) in the first nine months of 2020, impacted by state-induced lockdowns and lower discretionary spending. However, the stock surpassed its pre-Covid level in the last quarter, as broader momentum was seen in the sports betting industry. Interestingly, the actions of Penn National Gaming, Boyd’s immediate competitor, has skyrocketed due to the popularity of his sports betting app Barstool. In our previous analysis, we pointed out that at an expected market share of 15%, the market cap of Penn stock increased 340% from $ 3.8 billion to $ 17 billion over the past twelve. month. So Boyd’s 78% gain in the last quarter indicates more room for growth.
Overview of the sports betting industry
After the Supreme Court struck down the Professional and Amateur Sports Protection Act (“PASPA”) in 2018, the sports betting and iGaming industry was brought into operation in 25 states. Currently, Nevada, New Jersey and Pennsylvania account for nearly 75% of sports betting. When mature, the sports betting and iGaming industry is expected to reach $ 40 billion in the United States and $ 70 billion globally. Thus, several sports betting apps, including FanDuel, bet365, Hardrock Café, BetMGM and William Hill, are considering a significant slice of the pie.
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