Why "Big Short" Investor Michael Burry Sees Upside in Beaten-Down Sportbook Stocks

Summary

Investor Michael Burry made hundreds of millions of dollars as the Great Financial Crisis unfolded by shorting subprime mortgages. This would lead to his eventual portrayal in the film “The Big Short," positioning him as a famed investor. DraftKings Today$26.48 +0.19 (+0.72%) As of 07/10/2026 04:00 PM Eastern52-Week Range$20.46▼$48.78P/E Ratio441.33Price Target$34.46Burry’s hedge fund, Scion Asset Management, is now defunct. However, he remains a part of the investment zeitgeist, providing his takes on various assets. Notably, Burry recently made his opinion known on one of the most beaten-down corners of the stock market in 2026: online sportsbook stocks.Get Flutter Entertainment alerts:Sign Up The two most notable names in this space are DraftKings NASDAQ: DKNG and Flutter Entertainment NYSE: FLUT. DraftKings operates a sportsbook app by the same name, while Flutter operates the app FanDuel. Flutter Entertainment TodayFLUTFlutter Entertainment$110.84 +0.05 (+0.05%) As of 07/10/2026 03:59 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$91.52▼$313.68Price Target$178.83Overall, DraftKings is down more than 20% on the year, while Flutter has lost almost half of its value. Evidently, Burry thinks the market is wrong on these entertainment names, recently picking up shares of both. The emergence of prediction markets like Kalshi and Polymarket has been a huge driver of the decline in DraftKings and Flutter shares. However, Burry believes that Uncle Sam will have something to say about prediction markets, significantly weakening their competitive threat. Burry Reveals Sportsbook Purchase Prices and WeightingBurry says he recently purchased shares of DraftKings at around $26 per share and of Flutter at around $107 per share. Shares remain very close to these levels. Burry says that his allocation between the two names is 40% DraftKings and 60% Flutter. It is notable that Burry is allocating to both stocks rather than just one. Th...