Flutter Entertainment: Strong Momentum

Flutter Entertainment plc (OTCPK:PDYPY) has been soaring since mid-July 2022. JPMorgan estimated the stock has 30.71 percent upside from the current level. The company's performance in the fourth calendar quarter of 2022 and the first calendarquarter of 2023 will determine whether the company will continue to grow. If it does, the share price will probably break through the $80.00 per share mark.

Flutter Entertainment has a strong momentum.

Flutter Entertainment plc is a global sports-betting and gaming company reporting as four divisions.

Sky Betting and Gaming, Paddy Power, Betfair and Tombola are sportsbook, exchange and gaming brands in the UK and Ireland. Sportsbet is the market leader in Australia. PokerStars, Sisal, Adjarabet, and BetFair operate in multiple jurisdictions around the world. FanDuel, TVG, Stardust, FOX Bet and Pokerstars offer regulated real money and free-to-play sports betting in US and Canada.

PDY's revenue in the third quarter of 2022 was £1,891 billion, up 31 percent from £ 1,439 million in third quarters of 2021. Revenue from Sports was up 26 percent year-over-year, and revenue from Gaming was 40 percent. U.S. market became the largest for PDY in this quarter, generating revenue of £598 million. International segment, which included two months of Sisal, was revenue £466 million, up 56 percent, but Australia was the worst, with revenue down 14 percent on previous year. Company revised its revenue guidance to a range of $2.95 billion to $3.2 billion.

Flutter Entertainment has a strong momentum. The company has soared since mid-July. It is not seeing any new catalysts that would justify an ongoing upward move in the stock. There are new pieces of the puzzle that will be added via acquisition and in U.S. market, new states that'll legalize sports betting. After NFL playoffs, the company will see how much growth in its U.,S market will it need to reach profitability in 2023?

PDYPY has soared from $43.71 in mid-July 2022 to approximately $76.50 on January 9, 2022. The company is going to take a breather soon and its share price will correct. Flutter Entertainment has a good future ahead of it, but in the near term it needs to stop growing. It wouldn't surprise me if shareholders start to withdraw some profits. It's the type of company I would wait for a strong pullback in share prices and then hold for the long term.