Shares in Flutter Entertainment were simply playing catch up.
UK betting stocks have had a good run of late, rallying significantly off the 2019 lows.
The star performer in recent days has been Flutter Entertainment (formerly Paddy Power) - up an astonishing
11% yesterday and now up 22% from the 2019 lows. Deutsche Bank recently said that the online gaming sector in Britain is "poised for consolidation". The Bank said; "We see the scope to create value from another wave of consolidation, with rising regulatory and marketing costs encouraging a drive for scale, given material cost synergies." The rise in the Flutter Entertainment share price has also been attributed to the fact that the company has now "finally got it" when it comes to the regulatory burden. Regarding the move Niall O'Connor of bettingmarket.com said: " This is very clearly a watershed moment. By seizing the initiative the gambling companies have at one stroke eased their regulatory burden whilst also making themselves look more of an ethical investment than they previously were. This is a highly significant moment for the sector." At a more basic level, shares in the company were simply playing catch up with
William Hill and GVC, both of which had, before yesterday, rallied significantly off their 2019 lows compared with Flutter Entertainment - hardly rocket science.
The first table below shows the respective increase in the companys' share prices as of the morning of 4 July 2019. The second table reveals the respective increase in the companys' share prices before yesterday. Playing catch up - as simple as that. When people miss the boat - they are prone to significant exageration, and when they are late to the party - they are prone to drink too much too quickly.