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I'm Carol Messer along with Tim Stanevik. Let's get to you some stocks on the move. Bloomberg News Crosshouse at reporter Emily Graffeo is in the house. DraftKings, place your bets, place your best.
Well, yeah, so this stock dk NG, it's down about fourteen percent right now, thirteen point five and the revenue forecast for twenty twenty six miss they see six point five billion to six point nine billion. But I feel like talk of this stock is reminding a lot of people on Wall Street just how much competition DraftKings, a sports betting company has from prediction markets.
Right.
So, and I think it was Matt Levine who pointed out a few weeks ago in a column that just the consumer that wants to get involved in making bets. I think you pointed out that you can be eighteen on polymarket and Calshi and trade stocks, you can make bets, and you can't with DraftKings. So there's a whole kind of scope of regulatory issues that might make DraftKings more
vulnerable to competition. They said, though they're not seeing a discernible impact from predictions prediction markets on the revenue, and they see prediction markets as a massive opportunity for the company. I'm not sure how I.
Wait, wait, but prediction markets aren't opportunity.
There are opportunity, and they're not seeing an effect. Yeah, I don't understand that.
So DraftKings and also flutters FanDuel have launched their own versions of prediction markets products. But again, what we've seen is that the stocks of a lot of these online betting companies.
If you can bet on the Super Bowl using robin Hood's prediction markets, then why would you use DraftKings or FanDuel.
Yeah, I'm not sure. Again, they're saying it's a massive opportunity.
We'll have to I mean, at some point regulators have to say this is gambling, right, right, and so we need to regulate this.
Yeah, right now, these prediction markets are arguably working in somewhat of a regulatory gray area, and they're just taking advantage of it while they can. So yeah, yeah, all.
Right, let's go to travel.
Let's travel somewhere.
You guys are in a very like Friday.
You know this, it's a three day weekend, right? Oh?
Yes, right, so maybe that's just Friday, it's a it's a holiday weekend. Yeah, Okay, are if you're traveling, are you using Expedia or are you just asking sometimes munication?
Yeah, sometimes you don't even know if you're using an Expedia brand.
Wasn't there someone in the newsroom who just talked about h.
Paul Sweeney came by and he was like, these uh ll ms are amazing when it comes to travel, travel, but did it get it right? Like did it meet an itinerary where that you actually want to do?
I mean, the street has definitely caught on to that idea that travel agencies and honestly, this is part of that broader idea that any software company we're at large is really at risk. Here for AI.
Toscrict AI scare right.
Expedia take her xp x e XPE down five percent right now, is down as much as ten percent, around the lowest levels since November right now. And this was despite the fact that they had pretty strong earnings very recently. Fourth quarter revenue grow was the fastest in three years. Sales and gross bookings also meet estimates, but if you look at what Wall Street said Canter Fitzgerald, they have
a neutral rating on the stock. They said, until we gain confidence on Expedia's AI strategy, we're keeping this neutral rating. And BI kind of noted the same thing as well. AI is a long term risk for the broader online travel industry.
Yeah, there's this, there's somewhere this AI scare. You know, I'm not going to take a perspective, but you think about it and you can understand how things are going to change and evolve and whether.
Or not.
Market every day for the past two weeks.
Absolutely right, And yeah, it's like a whammy for Expedia because it's like travel agencies, but it's also just yes, software companies more broadly are the trade has been very risk off for software right now.
Okay, two decliners. Now let's go to something in the green.
Yes, we'll end on a high note. I'm looking at sure As Applied Materials AMAT is the ticker. It's up a nine percent right now, actually a record high, and this is also speaks to an AI trend. They're the largest US supplier of chip making gear and they had pretty good earnings overall yesterday after the closed net sales beat adjusted EPs beat, and yeah, they expect revenue of approximately seven point sixty five billion in the second quarter.
The global and also domestic build out of data centers is something that they will benefit from because again they're they're a supplier, so.
Forty this year and that's after a nearly sixty percent game last year.
Yeah. Yeah, we saw a number of analysts hiking price TRD and highlighting the magnitude of the forecast beat that this company had.
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