DKNG v. UBER – keep one, sell both, keep both of these post-emergent special purpose acquisition companies?
UBER seems to have achieved break even and operates in a duopoly. It has been completely crushing its one competitor, LYFT. LYFT leadership seems clueless based on recent communications and yearly performance. I tend to favor it, but it has had a big run lately and you always want to be wary of adding after something has run this much.
DKNG is also said to be getting near to break even, and perhaps will start to curtail their heavy loss leading promotions. We're just at the start of seasonal strength for them with football season, and the league seems to be anenable to fans betting on every micro aspect of the game. There's optimism for states to open up more online betting as a tax revenue source.
But we've heard this all before, and then DKNG still ended up doing promotions and deals and partnerships which postpone the supposedly lucrative mature phase. Season surges led to swoons. States drag their feet on approvals. And Britain offers an example where a glut of competitors and other factors showed that online gaming never did become as successful as the hype.
Would you consolidate into one of these, keep both, or dump them both here?
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