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Additional Reading from MarketBeat Media Is Flutter Entertainment a Falling Knife—or a Rare Contrarian Setup?By Sam Quirke. Originally Published: 2/9/2026. 
Key Points - Shares of Flutter have slid more than 50% from last summer’s highs, erasing three years of gains.
- Structural concerns remain, but the stock’s technicals are now deeply oversold and near long-term support.
- Bullish analysts argue the selloff has gone too far relative to the company’s long-term opportunity, with some calling for as much as 50% upside.
- Special Report: [Sponsorship-Ad-6-Format3]
After months of steady selling and an acceleration since early January, shares of Flutter Entertainment plc (NYSE: FLUT) are back to 2020 levels. The stock has effectively given up three years' worth of gains — a brutal outcome for what was once viewed as one of the most exciting names in global online gambling. This hasn't been a single-event collapse but a grinding loss of confidence as investors reassess competition, profitability, and long-term potential. The result is an ugly-looking chart that is starting to attract contrarian attention. Is the worst-case scenario already priced in? Let's take a closer look. Why the Selloff Has Been So Severe The drivers behind the multi-month decline are many. First, investors are increasingly worried about the rise of pure prediction-market players and what that could mean for Flutter's core sportsbook business. The fear is not just competition but margin pressure and a possible shift in how betting markets operate. Second, there is lingering frustration around Flutter's path to consistent profitability — a challenge many tech companies face today. Despite strong top-line growth, the market has grown impatient with the lack of clear timelines and visibility on when scale will translate decisively into earnings leverage. Third, competition remains fierce. Rivals such as DraftKings Inc. (NASDAQ: DKNG) continue to spend aggressively, keeping acquisition costs elevated and limiting the potential for margin expansion. Put together, it's perhaps not surprising that investors have been spooked. Why This Might Be the Falling Knife Worth Catching That said, the current risk/reward profile is starting to look attractive. From a technical perspective, Flutter appears deeply oversold, with momentum indicators at extreme levels. The stock is also trading near a major long-term support zone around $150, a level that has historically attracted buyers. These conditions don't guarantee a full reversal, but they increase the likelihood that selling pressure could exhaust itself soon. Fundamentally, the business remains solid. Core revenue engines remain healthy, particularly the U.S. iGaming segment, which continues to grow strongly year over year. That segment offers a more stable, higher-margin foundation and is becoming a larger part of the long-term bullish thesis. Flutter is also investing in prediction markets rather than ignoring the threat. While those initiatives add short-term uncertainty, they could help the company defend market share and participate in the evolution of the industry instead of being disrupted by it. After roughly a 50% drawdown and a return to 2020 prices, it's a fair question whether the worst-case scenario is already priced in. Analysts Are Still Backing the Long-Term Story While the market has been ruthless, analyst support has held up better than the share price suggests. In recent weeks, Buy ratings were reiterated by firms such as Canaccord Genuity, Stifel Nicolaus, Oppenheimer, and Barclays, among others. Fresh price targets from this group reach as high as the low-$300s, implying substantial upside given the stock is trading below $150. The common thread among bulls is not a denial of near-term challenges but confidence in Flutter's global scale, market diversification, and long-term growth prospects in regulated online gambling. Improved visibility around its prediction-market initiatives is also viewed as a potential catalyst for restoring confidence. When there's a wide gap between analyst views and market pricing, contrarian investors often start to pay attention. How to Think About Flutter From Here For now, this is not a clean dip-buying setup. Concerns about competition and profitability are real, and Flutter still has work to do to demonstrate it can fully capitalize on a large market opportunity. At the same time, the stock feels priced to fail. With technicals washed out, support being tested, and sentiment extremely negative, the conditions are in place for a sharp rebound if selling pressure fades. If Flutter can consolidate above $150, the setup could quickly shift from a falling knife to a high-risk, high-reward recovery trade.
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