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Profitability of Subscription-Based Industries
The chapter explores the profitability of industries with subscription-based business models, highlighting the potential for companies to become profitable as revenue growth outpaces operating costs. It delves into the challenges of new competitors and tech differentiation, while weighing the pros and cons of investing in multiple companies versus focusing on a single potential IPO winner. The speakers discuss investing in stocks like Draft Kings and FanDuel, expressing concerns about industry unpredictability and potential risks associated with tragic events impacting the industry's legitimacy.