DKNG - BETZ: Betting On Betting Creates Bubbles On Bubbles

• Sports betting stocks were top performers last year as both sports betting and stock buying became top lockdown hobbies.
• BETZ has slowed down recently as many potentially bearish catalysts pressure the broader equity market.
• While sports betting will likely grow over the coming years, many firms in BETZ are chronically unprofitable and are trading at many multiples of revenue.
• Online sports betting firms may run into significant competitive pressures which keep profits low or negative as users switch to those with lowest fees and spreads.
• Sports betting stocks may be in a bubble that lays upon a broader stock market bubble - setting the scene for potentially significant drawdowns.

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