NCAA March Madness: Watch DraftKings (DKNG), FanDuel (FLUT), Robinhood (HOOD), and long shot Grand Canyon (LOPE). (00:24) CoreWeave (CRWV) seeks shares ranging from $47 to $55 in IPO: report. (02:02) Sanofi (SNY) strikes autoimmune drug deal for up to $1.9B. (03:25)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Thursday: YY, FIVE, and moreTrump calls on Fed to cut rates as tariffs start to 'ease' into economyMusk’s X raises almost $1 billion in new equity funding - reportGold extends rally after Fed holds the line on interest ratesSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Full Episode
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Thursday, March 20th. I'm Julie Morgan. A sports betting bonanza has begun. CoreWeave gears up for an IPO. And Sanofi makes a $1.9 billion move. The first round of March Madness starts today around noon Eastern time.
The NCAA Division I Men's and Women's Basketball Tournament is a financial powerhouse in the sports world. This year's event promises to continue its lucrative tradition, with the NCAA expected to generate significant revenue from media rights, sponsorships, and ticket sales. The current broadcasting deal with CBS and Warner Bros.
Discovery is valued at $8.8 billion through 2032, contributing over $900 million annually to the NCAA's coffer. In the sports betting industry, DraftKings and Flutter Entertainment's FanDuel head into the tournament with high hopes that they can keep at least 10% of the more than $3 billion that is expected to be legally bet on the three-week tournament.
The total amount bet on the tournament is expected to more than double the betting volume on the 2025 Super Bowl. However, a tricky part of the business for sportsbooks operators such as DraftKings, FanDuel, BetMGM, ESPNBet, and Caesars Sportsbook is that the public is on a hot streak.
Last year, sportsbooks were hurt by strong favorites UConn and South Carolina winning the tournament, while the second half of the NFL season saw poor outcomes for most sports betting operators who had unbalanced books. Consumer-facing companies that have NCAA March Madness promotions running include Dick's Sporting Goods,
Potbelly, Dave & Buster's, Pizza Hut, Wendy's, and Red Robin Gourmet Burgers. Major advertising campaigns are being run by Capital One, AT&T, Coca-Cola, and Experian during the tournament. On a broader look, the games typically lead to a slowdown period for some parts of the leisure sector, such as theme parks and movie theaters, as the basketball tournament dominates some social planning.
CoreWeave, a hyperscaler startup backed by Nvidia, is reportedly asking for $47 to $55 per share as it approaches an initial public offering. CoreWeave produced $1.9 billion in revenue in 2024. which was a 737% year-over-year increase. By the end of the year, it was running 32 data centers with more than 250,000 NVIDIA GPUs online.
The company also reported a net loss of $863 million for the year. Microsoft accounted for 62% of its revenue in 2024, up from 35% the year prior. Earlier this month, CoreWeave signed an $11.9 billion five-year contract to deliver AI infrastructure with OpenAI. Reuters said, according to people familiar with the matter, that CoreWeave is expected to begin marketing its IPO this week.
It is expected to go public later this month or sometime in April. The ticker symbol will be CRWV. Sanofi has agreed to acquire an immunology drug from a clinical stage biopharmaceutical company, Drenbio, for up to $1.9 billion.
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