Needham estimates in-line NFL Week 2 hold for sportsbooks

Needham's analysis of NFL Week 2 performance for sportsbooks revealed an in-line week, with favorable results on Sunday evening offsetting challenges from Thursday. DraftKings (DKNG) maintained its top spot among online sportsbook operators on iOS App Store Sports. New York's hold of 2.85% was the lowest week in state history and the third lowest during the NFL season.

Shares of DraftKings and Flutter (FLUT) dropped last Thursday when New York data was released, with Flutter's stock falling 11% and trading near its 52-week low of $89.34, down 58% year-to-date. Despite the decline, AI analysis suggests Flutter is undervalued, with analysts expecting profitability this year. Nationwide hold was better than New York, influenced by underdog victories by the Jets and Giants.

Flutter Entertainment faced a downgrade from Rothschild Redburn and a price target cut, but Citizens and Stifel maintained positive ratings with a Buy and Buy rating, respectively. Prediction market volume for sports and parlays was $14.6 billion in the first NFL week, 29% higher than World Cup peaks.