What Happened?
Shares of online casino and sports betting company Rush Street Interactive (NYSE:RSI) fell 15.7% in the morning session after the company reported weak fourth-quarter results: full-year guidance implied a significant growth deceleration (13.1% growth vs 33.8% in FY2024). While earnings met expectations and sales slightly exceeded forecasts, the overall performance was underwhelming. However, given that markets tend to be forward-looking, investors are likely focused on the disappointing growth outlook, which has driven the stock price down.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Rush Street Interactive? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Rush Street Interactive’s shares are very volatile and have had 25 moves greater than 5% over the last year. But moves this big are rare even for Rush Street Interactive and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 35.6% on the news that the company reported fourth-quarter results that blew past analysts' revenue, operating margin, and EPS expectations. This was driven by more monthly active users than expected in its U.S. and Canada geographies (160,000 vs. estimates of 151,000). Off the strength of this quarter, management shared encouraging full-year revenue guidance of $800 million, clearing Wall Street's projections of $759 million. Zooming out, this was a great quarter that shareholders will appreciate.
Rush Street Interactive is down 16.8% since the beginning of the year, and at $11.43 per share, it is trading 31.6% below its 52-week high of $16.70 from February 2025.
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