4kodiak
4kodiak
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The Super Bowl is coming - Las Vegas casinos and sportsbooks may have already won. (00:26) DoorDash may be the favorite to win the Super Bowl brand buzz MVP award. (02:30) Coca-Cola spices things up with first new flavor in three years. (03:10)
This is an abridged transcript of the podcast.
Super Bowl LVIII will be held in Las Vegas this Sunday.
The annual entertainment filled weekend is setting up to be a jackpot for the Las Vegas Strip and sports betting operators.
According to the American Gaming Association, a record 68M Americans will wager $23.1B on the big game. Of course, those wagers take on different forms from betting with bookies, casually with friends and of course the legal market.
The perfect mix of sports betting legalization in new states and a high-interest game has some forecasters predicting legal wagers could top $1.3B across the 39 regulated markets, according to Legal Sports Report.
Notably, this year's Super Bowl will mark the first time that legal Super Bowl bets will be made in Florida. Other states in the betting mix this year include Massachusetts, Kentucky, Maine, Vermont, and Nebraska.
You may not like it but Taylor Swift is moving the needle with sports betting. Props bet volume on the Super Bowl has soared to record levels already at major sportsbooks, with action involving Taylor Swift and Kansas City Chiefs star Travis Kelce a significant factor.
The list of stocks that could see an incremental boost from all the attention on Las Vegas includes Red Rock Resorts (RRR), VICI Properties (VICI), Golden Entertainment (GDEN), Hilton Worldwide (HLT), and Bally's Interactive (BALY).
Morgan Stanley's long-term view of the overall market share dynamics is largely unchanged with FanDuel (OTC:PDYPY) and DraftKings (NASDAQ:DKNG) seen being at the top - followed by BetMGM (NYSE:MGM), Caesars Sportsbook (CZR) and ESPN Bet (DIS).
The catch-all:
The Roundhill Sports Betting & iGaming ETF (NYSEARCA:BETZ) is one way to play the sports betting and iGaming sector in a broad way. Top holdings include Flutter Entertainment (FLUT), DraftKings (DKNG), Evolution AB (OTCPK:EVVTY), Entain Plc (OTCPK:GMVHF), Kindred Group (OTC:KNDGF), Churchill Downs (CHDN), and Sportradar (SRAD).
Of course the Super Bowl is about more than football.
As always, the flood of high-profile commercials during the game will be a topic of conversation and could boost some brands that engage consumers in the right way.
Of the companies looking to make a splash, DoorDash (NASDAQ:DASH) may stand out. DoorDash (DASH) announced a sweepstakes it's calling "All The Ads."
As the name suggests, the company is giving one person literally everything that appears during the in-game commercials.
The winner of the DoorDash (DASH) sweepstake will be delivered a hodge-podge of items from a 30-pound tub of Hellmann's mayonnaise, to a Clydesdale saddle, to a BMW vehicle.
You won’t have this to drink in time for the game but it’s something to look forward to.
Coca-Cola (NYSE:KO) is introducing its first permanent soda flavor in three years later this month with Coca-Cola Spiced. The company said Coca-Cola Spiced offers a "unique alchemy" of its iconic cola, raspberry, and spiced flavor. A zero-sugar version of Coca-Cola Spiced will also be sold.
Looking ahead, Coca-Cola (KO) is due to report earnings on February 13. Analysts expect revenue of $10.65B and EPS of $0.49. Coca-Cola (KO) has topped EPS expectations in 16 straight quarters and also beat revenue marks in 14 of those quarters.
Other articles to look out for on Seeking Alpha:
Focus on smokeless tobacco paying off for British American Tobacco
Five questions on investors’ minds for 2024 answered - UBS
Greenlight Capital founder: Markets are fundamentally broken by passive investors
Expedia (EXPE) was in our earnings watch on Thursday. Expedia's upbeat Q4 results were upstaged by the departure of its CEO.
The company announced CEO Peter Kern is stepping down effective May 13. He will be replaced by Ariane Gorin, currently President of Expedia for Business. Kern will remain as the company’s vice chairman after May 13.
Premarket Expedia (EXPE) is down 14%.
The online travel company earned an adjusted profit of $1.71 from $1.24 in the same quarter last year and a penny better than expected.
Total revenue was up 10% to $2.88B, $10M more than what the Street forecasted.
On our catalyst watch for the day,
It is the last trading day before the Chinese New Year begins. The extended holiday could be a boost for Macau-related stocks such as Melco Resorts & Entertainment (MLCO), MGM Resorts (MGM), Las Vegas Sands (LVS), and Wynn Resorts (WYNN).
U.S. stocks on Thursday struggled for momentum, but eventually ended slightly higher.
The Nasdaq (COMP.IND) gained 0.24%. The Dow (DJI) added 0.13%. The S&P 500 (SP500) stuck close to the flatline through much of the day, finally concluding 0.06% higher at 4,997.91 points. At its session high, the index scaled an all-time peak of 5,000.40 points, crossing the key level for the first time ever.
Of the 11 S&P sectors, six ended in the green, with Energy leading the gainers. Utilities topped the losers.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. The Dow is up 0.03%, the S & P 500 is up 0.1% and the Nasdaq is up 0.2%. Crude oil is up 0.03% at more than $76 per barrel. Bitcoin is up 4.5% at more than $46,000.
In the world markets, the FTSE 100 is up 0.2% and the DAX is flat.
The biggest movers for the day premarket: Cloudflare (NYSE:NET) is up 25% after the company topped expectations in Q4 and issued higher-than-expected annual profit guidance.
On today’s economic calendar:
1:30 PM Fed's Lorie Logan Speech
