🐝 Bumble's restaurant play

Thursday, July 1, 2021 by Robinhood Snacks |
_Remembering how to swipe right IRL [Westend61 via GettyImages]_

Remembering how to swipe right IRL [Westend61 via GettyImages]

Yesterday’s Market Moves
S&P 500
4,297 (+0.13%)
Dow Jones
34,503 (+0.61%)
14,504 (-0.17%)
$35,046 (-2.47%)

Hey Snackers,

You've heard of Postmates, but have you heard of Postdates? Instead of getting a burrito delivered, you can get your toothbrush and charger retrieved from your ex's house. It's only available in NYC and LA, but that should provide them plenty of business.

Stocks closed out the first half of the year at record highs. The S&P 500 has soared 16% this year, as investors celebrate economic recovery.


1. Air conditioning stocks are at record highs, and so are outside temps: it's a self-feeding cycle

Crank the A/C to "Arctic Tundra"... ICYMI: a record-breaking heat wave has been plaguing the Pacific Northwest. Portland makes you think of rainy days in coffee shops — this summer, it feels more like you're in the coffee. The temp in Portland soared to 116 degrees yesterday, hotter than Miami, Dallas, and LA have ever been. Seattle has seen hundreds of heat-induced ER visits, and Portland is dealing with melting power cables and roads.

Too hot to handle... Not for A/C companies. All that sweat means more $$$ for HVAC companies like Carrier, Lennox, and Trane. Not so coincidentally, their stocks are near record highs. There's just one problem: A/C generates tons of carbon emissions. Keeping the world cool requires heavy electricity use, which is often powered by fossil fuels like coal and gas.

  • 15% of greenhouse gases come from HVAC systems — aka: heating/cooling tech. Now, some A/C giants are trying to go "sustainable."
  • Enter Trane Technologies: Trane's sales jumped last quarter as the world heated up, but it says its #1 strategy is "winning through sustainable innovation."
  • Trane's goal: Reduce 1 gigaton of CO2 emissions from its customers’ footprint by 2030, through “clean” technologies and higher energy-efficiency.

A/C companies are their own tailwind... Thanks to the "Conditioning Climate Cycle." A/C helps fight the sweat-inducing effects of climate change, but it also significantly contributes to them. Nineteen of the hottest years on record have been in the past 20 years. That means more people installing and cranking A/C, which means growing sales for HVAC companies — and more climate-warming emissions. But if HVACs can become more sustainable, they can start reversing more of their negative impact, too.


Swipe right on the zucchini pasta... Four months after its IPO, Bumble is doing an IRO: initial restaurant offering. The dating app where women make the first move is opening its first restaurant in NYC this month: "Bumble Brew." The bar/restaurant concept was orginally focused on “date-friendly” food. Read: no splattering sauces or volcanic burritos. Then, the pandemic forced Bumble to put its gastronomic plans on hold, and it emerged with a different mission.

Not just first dates... Bumble wants Brew to be a spot for connections of all kinds, from frittata with friends and family to networking over chardonnay. So it scrapped the date-friendly menu and added riskier choices like squid ink spaghetti.

  • That aligns with Bumble's new biz strategy: not just a dating app. Bumble has expanded with Bumble Bizz for career networking, and Bumble BFF for new friends.
  • Back to the dating: 90% of US Bumble users say they're ready to date IRL again. While Brew could host career chats, pent-up dating demand is Bumble's biggest opportunity.
  • Dating app folder is overheating: Bumble will have to share that demand with its much bigger rival Match, which owns Tinder, Hinge, and 20+ other e-romance apps.

Apps bring scale, but community brings relevance... If out of sight = out of mind, then Bumble wants to be the opposite — and gain an edge over Match in the process. Bumble shares are down 24% since it IPO'd. Building community with a physical presence could help it get its groove back. That's one reason companies like Warby Parker and AllBirds keep opening physical stores, despite having successful ecomm businesses.

What else we’re Snackin’

  • Beef: Amazon filed a request to stop new FTC leader Lina Khan from participating in any 'Zon-related antitrust investigations — it thinks she's biased.
  • Ride: Chinese ridehail giant Didi Chuxing notched a $68B market cap after its IPO yesterday — two-thirds of an Uber.
  • NoChip: Ford has to shut down several of its US factories for weeks because of the global chip shortage (still global, still short).
  • Give: The Gates Foundation committed $2B+ to gender equality efforts, as the pandemic has driven women out of work in record numbers.
  • UnPrivate: Private equity giant TPG is reportedly considering going public through an IPO or SPAC, which could value it at $10B.
  • e-OG: The internet's original source code was sold as an NFT artwork for $5.4M.

Snack Fact of the Day

Disney is the second largest purchaser of explosives in the US, after the Department of Defense (all those firework shows)


  • Weekly jobless claims
  • Earnings expected from Walgreens

Authors of this Snacks own shares of: Amazon, Uber, Match, and Disney

ID: 1706127