Tag Archives: Draftkings Inc

Business

Fanatics in talks to acquire BetParx sportsbook

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New York, NY. – December 7th. Portrait for a profile on Fanatics founder & CEO Michael Rubin at his office in downtown NYC.

The Washington Post | Getty Images

Fanatics is in discussions to acquire the BetParx sportsbook, as the sports merchandising company looks to take a bigger position in sports betting, according to people familiar with the matter.

A deal hasn’t been reached, although Fanatics signed a letter of intent to buy the sportsbook, said the people, who weren’t authorized to speak publicly on the matter. A deal price couldn’t yet be learned, and the discussions may not result in an agreement, the people added.

Representatives for Fanatics and BetParx declined to comment.

The BetParx app was launched last year by Greenwood Gaming & Entertainment, the parent company of Parx Casino in Pennsylvania, and Playtech, an online gambling software supplier. BetParx is also available in New Jersey, Pennsylvania, Maryland, Michigan and Ohio.

Fanatics has considered an initial public offering, but has been looking to complete an acquisition in the gambling space, among other possible deals, ahead of going public, the people said.

The company would be entering a crowded marketplace. Dozens of sports-betting operators have emerged in recent years, including Flutter-owned FanDuel, DraftKings, Caesars and BetMGM, which is co-owned by MGM Resorts and Entain. As the space has grown more competitive, smaller players have struggled, with some, like MaximBet, ceasing operations recently.

Fanatics has been seeking a deal in the sports betting space for some time. Last year, it had been in discussions with small gambling operator Tipico, CNBC previously reported.

The company is opening Fanatics Sportsbook at FedExField, the stadium of the NFL’s Washington Commanders. Fanatics also said it received a temporary license to operate in Massachusetts, and plans to partner with Plainridge Park Casino, which is owned by Penn National.

In October, Fanatics said it hired Andrea Ellis as chief financial officer of its betting and gaming division.

Last year, Fanatics’ billionaire executive chairman Michael Rubin sold his 10% stake in Harris Blitzer Sports Entertainment, the owner of the Philadelphia 76ers and New Jersey Devils, allowing Fanatics to enter the gambling space. NBA rules prohibit team owners from operating a gambling platform.

Fanatics raised $700 million in capital late last year, which the company planned to use toward potential mergers and acquisitions across the collectibles, betting and gaming businesses, CNBC previously reported.

The fresh round of capital brought Fanatics’ valuation to $31 billion.

Rubin’s company has been rapidly growing recently, pushing past solely being an online sports merchandise business. The company estimates its revenue for Fanatics, including its Lids segment, will be approximately $8 billion in 2023.

The company has been growing through acquisitions. Last year, it expanded its footprint in the collectibles business with a $500 million acquisition of Topps. It also bought clothing brand Mitchell & Ness in partnership with LeBron James and Kevin Durant.

–CNBC’s Jessica Golden contributed to this article.

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Business

The summer rally has been very bullish, but strategists say a big sell-off next month is possible

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Business

How The North Face is moving to compete with Patagonia

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The global outdoor apparel market is a $12 billion industry. For more than a half century The North Face has competed in the space, outfitting mountain climbers and skiers. But the outdoor recreation brand is now hoping to become a big player in the $185 billion streetwear market as well.

A renewed interest in the outdoors has also benefited the company.

“There is certainly a return to outdoors, there is a focus on health and wellness, there is a commitment to sustainability and consumers are looking to connect with brands that speak to those particular trends,” said Steve Rendle, CEO of VF Corp., parent company of The North Face.

That has given the company’s bottom line a boost. In October VF Corp. reported that fiscal second-quarter revenue at The North Face increased 31% to $883 million. 

And while interest in outdoor activities has surged, climate change and consumer trends such as sustainability have led to a range of challenges and opportunities for the brand. Every year 85% of textiles produced — including clothing, shoes and gear — ends up in landfills.  

So how is The North Face pivoting in its battle with rivals such as Patagonia in the crowded outdoor apparel space? And what led to the company’s transition from climbing gear to streetwear?

See the video above to learn more about The North Face’s new direction.

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Why Americans are eating more snacks

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Business

Pfizer, Canada Goose, Live Nation and more

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Check out the companies making headlines before the bell:

Pfizer (PFE) – The drug maker’s shares surged 9.4% in premarket trading after a study showed that its experimental Covid-19 antiviral pill reduced the risk of hospitalization and death by nearly 90%. Pfizer said it will ask regulators to approve the pill as soon as possible.

Canada Goose (GOOS) – The outerwear maker reported an unexpected profit for its latest quarter along with better-than-expected revenue, and also raised its full-year forecast. Canada Goose also said it’s seeing an indication of a strong winter season, and shares jumped 4.6% in the premarket.

Live Nation Entertainment (LYV) – Live Nation shares rallied 5.4% in premarket action after the event promoter returned to profit amid a sales surge as live events returned. Results exceeded analyst estimates.

DraftKings (DKNG) – The sports betting company’s stock slid 3.5% in the premarket after it reported a wider-than-expected loss and revenue that fell short of Street forecasts. DraftKings did raise the midpoint of its fiscal 2021 revenue guidance and said it expected a strong 2022.

Canopy Growth (CGC) – The Canadian cannabis producer lost 3 cents per share for its latest quarter, smaller than the 20-cent loss expected by analysts. However, revenue fell short of estimates and the company flagged slower-than-expected revenue growth for the second half of fiscal 2022. The stock fell 3.5% in the premarket.

Peloton (PTON) – Peloton tumbled 31.8% in the premarket after the fitness equipment maker slashed its full-year sales forecast by $1 billion, amid slowing demand for bikes and treadmills. Peloton also reported a quarterly loss of $1.21 per share, wider than the $1.07 loss expected by analysts, and revenue fell short of estimates as well.

Expedia (EXPE) – Expedia earned an adjusted $3.53 per share for its latest quarter, well above the $1.65 consensus estimate. Revenue was also higher than expected, with the travel services company benefiting from the surge in travel demand. Expedia soared 13.2% in premarket trading.

Airbnb (ABNB) – Airbnb rallied 6.2% in the premarket as the travel-demand surge lifted sales and earnings beyond Wall Street forecasts. Airbnb earned $1.22 per share for its latest quarter, beating the $0.75 consensus estimate, with sales coming in at a record high. The company also said it expects a strong holiday season.

Uber Technologies (UBER) – Uber reported its first profitable quarter on an adjusted basis, thanks to upbeat performances by its ride-sharing and food delivery services. It did post an overall loss due to the drop in value of its stake in China ride-hailing company Didi (DIDI). Uber rose 1.2% in premarket trading.

Pinterest (PINS) – Pinterest came in 5 cents above estimates with an adjusted quarterly profit of 28 cents per share, and the image-sharing site operator’s revenue also topped analyst forecasts. It is also predicting an upbeat current quarter as the online retailer spends more on holiday season ads. Pinterest jumped 4.5% in premarket action.

Shake Shack (SHAK) – Shake Shack reported a quarterly loss of 5 cents per share, 1 cent less than Wall Street had anticipated, but the restaurant chain’s sales missed analyst forecasts. Despite the revenue miss, Shake Shack rallied 6.3% in the premarket.

Square (SQ) -Square matched estimates with quarterly earnings of 37 cents per share, while the mobile payments company’s revenue missed forecasts. Square did see a nearly 60% rise in profit from a year earlier, thanks in large part to a surge in bitcoin transactions, but the stock dropped 3.7% in premarket trading.

Lions Gate Entertainment (LGF) – The movie and tv studio is considering a sale or spin-off of its Starz premium cable channel, saying it sees the potential to unlock significant shareholder value. The stock surged 15.1% in the premarket.

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Business

Merck, Lordstown Motors, Coty, Zoom and others

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Check out the companies making headlines before the bell:

Merck (MRK) – Merck shares surged 7.5% in the premarket after it announced that its experimental Covid-19 pill cut the risk of death and hospitalization by 50% in a late-stage study. Merck plans to file for emergency use authorization as soon as possible.

Lordstown Motors (RIDE) – Lordstown struck a deal to sell its Ohio plant to Taiwan’s Foxconn for $230 million, with Foxconn taking over the manufacturing of Lordstown’s full-sized electric pickup truck. It was reported earlier this week that a deal between the two sides was near. Lordstown rallied 6.3% in premarket trading.

Coty (COTY) – The cosmetics company’s stock gained 2% in the premarket as it announced a deal to sell another 9% stake in its Wella beauty business to private equity firm KKR (KKR). In return, KKR will redeem about half its remaining convertible preferred shares in Wella, reducing Coty’s stake to about 30.6%. Coty had sold a 60% stake in Wella to KKR last December.

Zoom Video Communications (ZM) – Zoom and Five9 (FIVN) have terminated a nearly $15 billion deal by mutual consent. Zoom had struck a deal to buy the contact center operator, but it was rejected by Five9 shareholders. The two sides will continue a partnership that had been in place prior to the proposed transaction. Zoom jumped 4% in the premarket while Five9 slid 1.4%.

Walt Disney (DIS) – Disney and Scarlett Johansson have settled a lawsuit involving the “Black Widow” movie. Johansson had sued Disney over the release of the movie on the Disney+ streaming service at the same time it was debuting in theaters. Terms of the settlement weren’t disclosed.

Wells Fargo (WFC) – Wells Fargo will have to face a shareholder fraud lawsuit involving its attempt to rebound from years of scandals. A judge rejected the bank’s moved to have the suit dismissed, saying it was plausible that statements by various Wells Fargo officials about the recovery were false or misleading.

Exxon Mobil (XOM) – Exxon Mobil said in an SEC filing that higher oil and gas prices could boost third-quarter earnings by as much as $1.5 billion. Exxon profits have been improving amid the rising prices as well as cost cuts by the energy giant.

Nio (NIO) – Nio reported deliveries of 10,628 vehicles in September, a 126% increase over a year ago for the China-based electric vehicle maker. Nio added 1.8% in the premarket.

International Flavors (IFF) – The maker of food flavoring and cosmetic ingredients said Chairman and Chief Executive Officer Andreas Fibig plans to retire, although he’ll remain at the helm of the company until a successor is found. Shares added 2.5% in premarket action.

Jefferies Financial Group (JEF) – Jefferies reported a quarterly profit of $1.50 per share, beating the 99-cent consensus estimate, with the financial services company’s revenue also topping Wall Street forecasts. Jefferies saw its results boosted by a strong performance in its investment banking business. Jefferies gained 1.4% in the premarket.

MGM Resorts (MGM) – Susquehanna Financial downgraded MGM to “negative” from “neutral,” saying the DraftKings (DKNG) bid for British gambling company Entain weakens MGM’s prospects in the digital gaming and betting market.

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Business

Uber, DraftKings, Seagen, Activision Blizzard and more

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Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.

Philip Pacheco | AFP via Getty Images

Check out the companies making headlines in midday trading.

Uber — The ride-hailing giant saw its stock surging 11% after the company boosted its third-quarter financial outlook in a regulatory filing. Uber’s bookings and adjusted earnings are now expected to be better than first reported. CEO Dara Khosrowshahi also told CNBC that he sees surging ride prices easing up by the end of the year.

DraftKings — Shares of DraftKings fell more than 3% after news that the online gaming giant made a bid to acquire U.K. sports betting company Entain. The offer is worth $20 billion and is largely in DraftKings stock, along with cash, sources told CNBC.

Seagen — The drugmaker’s shares popped more than 5% after announcing the Food and Drug Administration granted accelerated approval of its drug TIVDAK, which treats adult patients with recurrent or metastatic cervical cancer.

Activision Blizzard — Shares of the video gaming company sunk 2.9% after the Wall Street Journal, citing people familiar, reported that the Securities and Exchange Commission is investigating Activision Blizzard’s handling of employees’ allegations of sexual misconduct and discrimination.

ConocoPhillips — Shares of the energy company rose over 3% the day after ConocoPhillips and Shell announced a $9.5 billion sale of West Texas oil field assets to ConocoPhillips. The deal gives ConocoPhillips an additional 225,000 acres of energy assets. The London-traded shares of Royal Dutch Shell also moved higher.

AutoZone – Shares of AutoZone rose 4.2% after the auto parts retailer reported strong quarterly earnings. Earnings per share of $35.72 beat analysts’ estimates of $29.88.

Big Lots — The retail stock dropped more than 5% on Tuesday after Piper Sandler downgraded Big Lots to neutral from overweight. The investment firm said in a note to clients that the end of fiscal stimulus and rising costs would hurt the retailer over the next year.

Johnson & Johnson — Shares of the drugmaker rose nearly 1% after announcing its Covid-19 booster shot is 94% effective when administered two months after the first dose in the U.S. The company said the booster increases antibody levels four to six times higher than just one shot.

— with reporting from CNBC’s Yun Li, Jesse Pound, Tanaya Macheel and Hannah Miao.

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Business

Casino stocks rally as Macau loosens restrictions

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Casino stocks are on a hot streak this week.

Las Vegas Sands, Wynn, Caesars, Penn National Gaming and MGM Resorts have all surged in recent days, getting a big boost Tuesday after gambling destination Macao eased restrictions for visitors from mainland China.

This group has been incredibly volatile over the past 18 months, hit hard by closures and then travel disruptions and uneven traffic during the coronavirus pandemic.

So, is Lady Luck finally on the casinos’ side?

Quint Tatro, president of Joule Financial, says yes … for one stock.

“The easy play is Las Vegas Sands,” Tatro told CNBC’s “Trading Nation” on Tuesday. “It was March of just this year we were on here speaking about their abrupt shift and their sale of all their Las Vegas properties to basically double down and focus on their Asia exposure. At the time, I think it was a big question mark.”

The benefits of that strategy now make more sense to Tatro in light of China’s reopening and Macao’s rebound. Las Vegas Sands announced in the first quarter that it would sell its Vegas properties including its Venetian Resort for a total of $6.25 billion.

“It still has a difficult balance sheet, it’s not the greatest balance sheet, but they do have $2 billion now in unrestricted cash that they can put where they see the best opportunity,” said Tatro. “If this [rebound] is legit and we start to see a resurgence in the casino space, I think Las Vegas Sands is the play here.”

Las Vegas Sands has tumbled 36% from a March high. It is down 28% for the year.

JC O’Hara, chief market technician at MKM Partners, said the downturn in the China-exposed casino names has him wary. Instead, he prefers DraftKings, a gambling stock that he says looks to have stabilized after its pullback.

“It is reestablishing itself in an uptrend, breaking back above the 150-day moving average. So rather than trying to bottom pick some of these names and make calls on economic data, let’s look where the price action is positive and that’s DraftKings,” he said during the same interview.

O’Hara targets the March highs above $74 as a promising target price and sees a band of support at $50. DraftKings closed Tuesday at $56.47.

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Business

Stock futures are flat ahead of key unemployment report

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U.S. stock index futures were little changed during overnight trading on Thursday, ahead of Friday’s highly anticipated jobs report.

Futures contracts tied to the Dow Jones Industrial Average dipped 24 points. S&P 500 futures and Nasdaq 100 futures were flat.

Stocks finished Thursday’s session in the green, with the S&P 500 rising 0.6% to close at a new record. The Dow gained 271.58 points, or 0.78%. The Nasdaq Composite also advanced 0.78% for its fourth straight positive session.

All eyes are on Friday’s jobs report, which will show how the labor marked fared during July. Economists expect the economy to have added 845,000 jobs last month, according to estimates from Dow Jones. However the broad range of targets — from 350,000 on the low end to 1.2 million at the top — show the uncertainty that’s currently in the market.

Brad McMillan, chief investment officer at Commonwealth Financial Network, noted that the monthly readings this year have ranged from 233,000 in January to 850,000 in June. He said a print below 300,000 could be a cause for concern, while a reading between 300,000 and 400,000 would show a “reasonably healthy” economy.

“A better result would be in line with the average for the second quarter, or around 500,000 to 600,000. This would show that the recovery continues and that while the medical and labor issues are preventing further acceleration, the economy still has enough momentum to keep moving forward at a reasonable rate,” he said.

Friday’s report comes after the weekly initial claims number reported on Thursday came in at 385,000, which was in-line with expectations.

Wall Street is closely watching Friday’s jobs report given its potential to impact the Federal Reserve’s policy going forward.

“While uncertainty over monetary policy is likely to cause further bouts of volatility, we believe the Fed’s move toward tapering is unlikely to prompt a reversal of the equity rally,” noted strategists at UBS.

“Labor market slack, well anchored inflation expectations, and risks from the delta COVID-19 variant make interest rate increases before 2023 unlikely,” the firm added.

A busy week of earnings continues on Friday with several notable reports, including from Canopy Growth, AMC Networks, Draftkings, Norwegian Cruise Line and Goodyear Tire. Additionally, Berkshire Hathaway is on deck for Saturday morning.

Through Thursday afternoon 427 S&P 500 components have posted quarterly results, with 88% topping earnings estimates, according to data from Refinitiv. When it comes to revenue, 87% have exceeded expectations.

For the week, the Dow is up 0.4%. The S&P and Nasdaq are up 0.77% and 1.5%, respectively.

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