Why Flutter Entertainment (FLUT) Stock Is Plummeting Today

Flutter Entertainment's Recent Performance

Flutter Entertainment (NASDAQ:FLUT), a leader in global online betting, saw its stock drop by 14.6% during afternoon trading after releasing fourth-quarter 2025 results that fell short of analyst expectations in several important areas.

The company reported $4.74 billion in revenue, marking a 24.9% increase compared to the previous year. However, this figure did not meet Wall Street forecasts. Investors were particularly concerned about profitability, as Flutter posted a GAAP loss of $0.05 per share—a notable decline from last year's profit of $0.45 per share and well below consensus estimates. Adjusted EBITDA also failed to reach projected levels. Operating margin decreased to 5.4% from 7.4% a year earlier, and free cash flow margin dropped significantly to 2.9% from 12.1%. Despite robust sales growth, the company struggled to maintain profitability, prompting a negative response from the market.

Sharp declines in stock prices can sometimes create attractive opportunities for investors seeking quality companies. Is this a good moment to consider buying Flutter Entertainment?

Market Reaction and Broader Context

Flutter Entertainment’s stock has experienced notable volatility, with 12 swings greater than 5% over the past year. However, the magnitude of this recent drop is unusual, highlighting the significant impact of the latest earnings report on investor sentiment.

Just four days ago, the stock fell 4.4% following news of the Trump administration’s announcement of new global tariffs, which revived uncertainty around trade policies.

This development followed a Supreme Court decision that prevented the president from using the International Emergency Economic Powers Act (IEEPA) for imposing duties—a ruling that initially boosted markets. Nevertheless, the administration turned to the Trade Act of 1974 to implement a 15% global tariff for up to 150 days. The swift reintroduction of trade barriers has created considerable uncertainty for businesses reliant on international supply chains and global commerce. Investors are now assessing how these tariffs might affect corporate profits and the wider economy.

Since the start of the year, Flutter Entertainment’s share price has dropped 51.6%. At $105.73 per share, the stock is trading 65.7% below its 52-week peak of $308.60, reached in August 2025. An investor who purchased $1,000 worth of Flutter shares five years ago would now have an investment valued at $526.00.

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