- 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.
For further details see:
BETZ: Betting On Betting Creates Bubbles On Bubbles