RSI - Rush Street Interactive: This Small-Cap Betting Stock Has Doubled And Still Has Room To Run
2024-06-23 08:46:21 ET
Summary
- Online casino games are seen as a growth engine in the iGaming sector.
- Rush Street Interactive is a key player in the online betting space, with plans to expand in Latin America.
- Despite no deal being consummated, RSI's stock has doubled in a year, with potential for further growth and a possible acquisition.
Above: iGaming, i.e. online casino games, are rapidly seen as a growth engine.
In the halcyon years that followed the SCOTUS decision in May 2018 that opened the floodgates to legal sports betting in the US, the surge in stock values in the sector was beginning to look like an Nvidia madness. Leading operator Draft Kings moved its shares from ~$9 to $71 in March 2021 before reality set in. Similar runs engulfed shares in the online gaming sector. Yes, Mr. Market said, trees do grow to the skies. Since then, prices for sports betting stocks have eased considerably. Investors began to realize, marketing costs would soar, margins were slim, barriers to entry were few. Overall, we saw growing conviction that the sector had lost its quick profit promise....
Rush Street Interactive: This Small-Cap Betting Stock Has Doubled And Still Has Room To Run