Scotts' suburban alter ego
Hey Snackers,
Zoom's way of getting in on the return to the office: virtual receptionists for contactless check-in (don't ask them where the bathroom is).
Stocks barely budged yesterday, but legislators made some moves: the Dem-controlled House passed a resolution that would allow Congress to pass a $1.9T Covid relief bill — without Republican support. Now it's up to the Senate.
Potting soil, pot... Same thing, right? Scotts Miracle-Gro has a green thumb in more ways than one. You might know Scotts for its gardening and lawn care products. But Scotts is also kind of a cannabis company: its hydroponic systems help "specialty crops" grow indoors with special lighting and no soil. Shocker: weed growers love it. Scotts made both sides greener last quarter:
Every rose has its Hawthorne... A few years ago, Scotts decided it wanted a piece of the pot market (minus the pot). So it bought up 50 hydroponics-related brands, which now make up its Hawthorne division. Last quarter's growth was primarily driven by the lawn/garden segment, which makes up more than half of Scotts' total sales. But Hawthorne makes up the rest, and it's quickly catching up.
Investors are optimistic about federal legalization... of pot. The Democrat-controlled Congress and White House support decriminalizing cannabis at the federal level. Just this week, Senate Majority Leader Chuck Schumer unveiled a plan to end the federal marijuana prohibition, arguing it's good for racial justice. Meanwhile, more states are legalizing recreational use. That's partly why Scotts' stock has nearly 2X'd over the past year. Also: the Global X Cannabis ETF, which tracks a number of pot stocks, is up 75% this year.
Hit 'em with the read receipts... Dating legend Match Group owns Tinder, Hinge, OkCupid, and 20+ other e-romance businesses. As you spent #romantic nights in bed swiping, Match's full-year sales jumped an expectation-topping 17% (think: Tinder Gold subscriptions). But investors weren't swooning over Match's underwhelming forecast for 2021: the stock plunged 8% yesterday.
Love knows no borders... neither does Match's business interests. Match makes more $$$ internationally than it does in North America — and international users are growing faster. In Japan, Match’s second-highest grossing market after the US, sales have soared 600% over the last five years. Now Match owns the top two dating apps in Japan: Tinder and.... the opposite of Tinder.
Match is a dating lab... more than a dating company. It dominates online dating because of this (self-proclaimed) differentiator: an "ability to deploy learnings from across our portfolio" in new businesses. Match tests new concepts and strategies through different apps, then applies its learnings to its dozens of services. Think: monetization, video dating, and safety tools. It used strategies from Tinder to scale up Hinge post-acquisition. And it'll likely use learnings from Pairs to expand to other countries with arranged-marriage industries. Its soon-to-be public rival Bumble doesn't have that same breadth (yet).
Authors of this Snacks own shares of: Match and Apple
ID: 1510976