Craig-Hallum sees stock selloff on prediction markets as buying opportunity

Craig-Hallum says prediction markets were the focal point of discussion this week with everyone the firm met, saying it hasn’t had any impact on their business and many explaining why it could be a positive opportunity. Craig-Hallum thinks stocks across the entire sector have been oversold over the past week, creating an even more compelling investment opportunity even if the market noise around prediction markets likely persists. Overall, DraftKings (DKNG) and Flutter Entertainment (FLUT) stock selloffs indicate material risk from predictive markets, but companies have an opposite view, the firm argues. Craig-Hallum thinks this is a buying opportunity.