Gan vs rush street, which is the better long-term buy?I currently hold shares in gan and plan to see the growth through the bad times. However, many people say rush street is the better long-term buy. Which is the better long-term hold and grow stock and can they grow in tandem together in the same portfolio?
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Rush Street is likely to be bigger and a little cheaper at this point, given what we know from the initial SPAC disclosures. Haven’t dug into the business in any detail yet, personally. Rush Street is building consumer-facing brands, it appears, not just providing the back-office technology like GAN is, so if that’s the case then their costs should be meaningfully higher in competing with the marketing budgets of DraftKings, FanDuel and the other casino operators. They just raised their guidance for the year, so expect $270 million in revenue now, which is big growth from last year. I have not looked through the SPAC filings, but from some initial articles I saw that is likely to mean they’re valued at something like 8-10X revenues, a little cheaper than GAN and dramatically cheaper than DraftKings.
If folks are interested in researching, Rush Street is going public through a merger with dMY Tech, a SPAC with ticker DMYT.