GZV #29: Social Sports Betting and you guessed it, GameStop.
Startups. Trends. Markets. All from a Gen Z view.
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Let me introduce you to… Pikket.
Problem:
“Betting makes sports more fun, but losing money doesn’t”
“Gen Z has a low risk appetite & betting is expensive.”
“Gen Z spends most time on social platforms.”
Solution/Product:
“Combination of social network and free-to-play betting”
Differentiating factors:
No betting platform that I am aware of has a social feature like this.
The only way we know what our friends bet is by texting them.
Gen Z Take:
Gen Z loves betting. The thing is those who do bet, love just betting actual money.
Some people only bet a few bucks, but others have hundreds riding on games every night. Both groups are very social when it comes to betting.
I would say roughly 30-40% of guys I know are pretty active betters.
End story: I see the market for this app
Recommendation: I really like this team and the idea, I just have a few adjustments.
Most people who bet, love real money. I see real value in creating the CommonStock for betting.
I want to see what my friends are betting that night and follow along.
💸💸💸 Fundraising? 💸💸💸
Yes, to see their deck and get more information…
Email me: thomas@genzvoice.com
Trends: GameStop (GameStonk?)
I mean, do I even have to provide background information? I guess I will. If you have been living under a rock for the past few days, you probably missed the news that GameStop has been on a tear, up over 300% in the last 5 days. This has mostly been blamed on the new retail, reddit, and robinhood traders of my generation. So I’ll shed some light.
I know these kids.
I know a few kids who do follow r/wallstreetbets and who always trade with the hype. These kids are interested in the stock market for one thing; quick money. They want to get rich quick, even though we know that’s not possible, they seemed to have found a way.
What’s going to happen with these kids? Will they grow out of this?
The kids who are making these bets right now will eventually mature or leave the market. They will realize these trades are non-sense, or the market will just become boring for them. The problem is, for every r/wallstreetbets trader that retires, another one is born.
So will this keep happening?
Yes, I believe it will. During quarantine we saw this happening a lot more with stocks like Hertz and AMC. I think this is just a new element of the market, and eventually these traders will be burned. We know that GameStop, unless they pivot well, is essentially obsolete. All videos games are virtual now and a retailer like GameStop is pretty useless.
So you think GameStop will fall?
Unless they pivot, which I actually think they could do under the right management, GameStop looks like a stock that belongs at $0.
What stock will this happen with next?
I wish I knew, I’d buy call options up the wazoo.
Feel free to email or text with any questions or comments about the newsletter, Gen Z, or startups.
thomas@genzvoice.com