IPO Rumors, Inflation Surprise, Retail FOMO, and More: Over the Weekend #007

Welcome to another edition of “Over the Weekend.” This is where I summarize interesting finance and economics content that I read, listened to, or viewed this past week. I also link to the sources so you can check them out “over the weekend.”

1) 50,000 per minute is the rate at which…

  • A: I consumed chips and dip during the Super Bowl.
  • B: FanDuel accepted bets during the game, averaging 2 million active users.

Answer: Both A and B are correct.

The difference is that you may be able to profit off B.

FanDuel parent Flutter Entertainment is considering listing on a U.S. stock exchange.

FanDuel is the United States’ sports betting market leader and is on track for full-year profitability in 2023. The company generates $3 billion in annual revenue.

Flutter, based in Ireland, expects extensive growth in the U.S. It estimates the total addressable market at more than $40 billion by 2030. That would more be over 3x bigger than the rest of the world, according to the financial services company, Jefferies.

Source: CNBC

2) Inflation remains sticky.

I wrote in the Jan. 21 edition of Over the Weekend that it was way too early to claim that inflation is under control. It is very difficult to tame inflation, especially in the short term and when there’s a tight labor market like the one we have now.

Data released this week revealed how much economists have underestimated the stickiness of rising prices. 12 out of 14 indicators came in above expectations.

3) Most money ever flows into U.S. equities.

It doesn’t appear that the $1.51 billion cited above was adjusted for inflation. There’s no doubt, however, that a ton of money flowed into equities last month.

When you see retail investors jumping into stocks so quickly, it often signals that a market top is near. Bubbles burst when there is no one left to buy because they’ve already invested their cash in a FOMO frenzy (FOMO = fear of missing out). This happens when retail investors see stocks rising, so they rush to join the party. This causes stocks to climb even more…until they crash.

There’s not enough info in this chart to conclude that’s what’s happening now, but the behavior of retail investors is worth monitoring.

4) Financial statements explained in a Twitter thread.

There are many free resources that explain financial statements. Here’s a great one wrapped in a Twitter thread:

5) Footage of how investors responded to last week’s up and down market.

That’s a wrap.

That’s it for this edition of “Over the Weekend.” Don’t miss the next edition. Subscribe to The Antagonist now. In addition to “Over the Weekend,” you’ll receive investing and trading research, recommendations, and model portfolios.

Thanks for reading, and have a great weekend!
Jason Milton

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