I came across Rover many years ago through a friend in Seattle who worked there. This was several years before they became a publicly traded company. He raved about the culture there and how they will eventually become the Uber of dog sitting. So when Nebula Caravel brought them public, I was thrilled to make an investment into $ROVR. But as you know, SPAC-deal stocks pop on the news and the eventually comes down quite a bit so I waited until recently to make an investment and I will share my thesis on why I think they are poised to pop.
Fact 1: During the pandemic, many people got lonely and they also ended up moving to a bigger place. And what did they do? They adopted more pets. And they are keeping them.
Fact 2: There is a pent up demand for travel. More and more people are traveling and it’s getting close to the pre-pandemic level. This Thanksgiving is supposed to be the busiest week for airports and airlines.
Fact 3: Duh, it doesn’t require a rocket science degree to figure out what has been happening to the demand for pet sitting. It went up.
Fact 4: Dog-boarding facilities like pet hotels and PetSmart suspended their operations and they are slowly re-opening. However, it’s not fast enough that there is a huge waitlist.
Hence, the pet care/pet-sitting service platform such as $ROVR and Wag should benefit significantly. Some naysayers will point out that $ROVR have had issues with their pet-sittings. Yes, just like Uber ($UBER) with sexual assault cases by drivers, there will be few rotten apples that will taint the brand image but $ROVR is trying their best to address missing dog issues and etc.
If you believe that $ROVR is poised to benefit from this, there are three ways to play this
- $ROVR – stocks
- $ROVRW – warrants
- Options
Given the price movements of the warrants, I believe (2) might be the best way to play but again, do you own DD before you make any investment decisions.
And btw, did I mention that $ROVR might be a good acquisition target for companies like $CHWY given that $AMZN can launch a full assault at any moment to take them down?
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