We recently compiled a list of the 10 Stocks Drop by Double Digits Mostly Due to Disappointing Earnings. In this article, we are going to take a look at where Rush Street Interactive, Inc. (NYSE:RSI) stands against the other stocks.
Wall Street’s main indices suffered a bloodbath on Thursday as overall investor sentiment was weighed down by President Donald Trump’s series of tariffs on goods from other countries.
The Dow Jones dropped by 0.45 percent, while the S&P declined 1.59 percent. Nasdaq, on the other hand, lost 2.78 percent.
On Thursday, Trump threatened to slap EU products with a 25-percent tax, following his announcement on Wednesday of another month of delay for the imposition of taxes on goods from Mexico and Canada.
Ten companies also mirrored wider market pessimism, posting double-digit declines, albeit the drop was predominantly due to dismal earnings performance last year.
To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A closeup shot of slot machines and a player nervously waiting for the spin to stop.
Rush Street Interactive, Inc. (NYSE:RSI)
Rush Street Interactive, Inc. (NYSE:RSI) fell by 15.26 percent on Thursday to end at $11.27 apiece as investors appeared to have already priced in the company’s expected impressive earnings over earlier news that revenues from the online casino and gaming industry in 2024 soared to a new record, surpassing contributions from local and government agencies.
According to the American Gaming Association (AGA), American gaming reached an annual record of $71.92 billion in revenues last year, or a 7.5-percent increase from the $66.5 billion in 2023. The fourth quarter alone saw a new revenue record of $18.62 billion.
For its part, Rush Street Interactive, Inc. (NYSE:RSI) swung to a net income of $6.5 million in the fourth quarter alone from a net loss of $5.45 million in the same period in 2023. It also posted a net income of $7.2 million in full-year 2024, reversing a net loss of $60.05 million in 2023.
Revenues for the quarter increased by 31 percent to $254.2 million from $193.9 million in the same period a year earlier, while revenues for the full-year period increased by 34 percent to $924.1 million from $691.2 million.
Overall RSI ranks 5th on our list of Thursday’s worst performers. While we acknowledge the potential of RSI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RSI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.