Why Rush Street Interactive Shares Are Falling Today

Rush Street Interactive Inc RSI is trading significantly lower Thursday after the company reported worse-than-expected financial results. 

Rush Street said fourth-quarter revenue increased 31% year-over-year to $131 million, which came in below the $135.84 million estimate. The company reported a quarterly earnings loss of 17 cents per share, which was worse than the estimate for a loss of 11 cents per share. 

Real-money monthly active users in the U.S. were up 28% year-over-year in the fourth quarter with average revenue per MAU reaching $327 during the quarter.

"During the first half of 2022 we look forward to expanding into Canada and Mexico with our online casino and sportsbook sites and apps in these two large population markets where we are well positioned to achieve success," said Richard Schwartz, CEO of Rush Street Interactive.

Rush Street expects full-year 2022 revenue to be between $580 million and $630 million versus the $611 million estimate. 

Analyst Assessment: 

• Needham analyst Bernie McTernan maintained Rush Street with a Buy rating and lowered the price target from $17 to $12.
• Wells Fargo analyst Daniel Politzer maintained Rush Street with an Equal-Weight rating and lowered the price target from $16 to $11.
• Craig-Hallum analyst Ryan Sigdahl downgraded Rush Street from a Buy rating to a Hold rating and announced a $10 price target.

Rush Street is an online gaming and entertainment company that focuses primarily on online casino and online sports betting in the U.S. and Latin American markets.

See Also: Why HEXO Shares Are Trading Higher Today

RSI Price Action: Rush Street has traded as low as $8.18 and as high as $21.83 over a 52-week period.

The stock was down 21.3% at $8.01 at time of publication.

Photo: Arcaion from Pixabay.