Tinder jumped. Match jumped. Then IAC jumped.

Wednesday, August 7, 2019 by Robinhood Snacks | Disclosures

When you hear your IAC stock is really Tinder stock

Dow Jones
26,030 (+1.21%)
S&P 500
2,882 (+1.30%)
7,833 (+1.39%)
$11,590 (+4.10%)
10-Yr US Treasury

Hey Snackers,

Disturbing: Domino's UK is stockpiling pizza ingredients on worries that Brexit could mess with its supply chain.

Not disturbing: After their worst loss of the year, stocks rebounded hard Tuesday on hopes that China's currency trade war retaliation won't be as bad as investors thought.

1. IAC is the venture capital-like public company powering Match

Tinder gets all the looks... And it's owned by Match, whose stock surged 19% Tuesday as the dating app's growth jumped again. But it wasn't just Match that popped — IAC shares rose 12% too. That's because IAC owns the majority of Match, along with 150 other brands that you likely used at some point today.

It's all in the name... "InterActive." That's what IAC's "I" and "A" stand for. And its legendary leader Barry Diller (aka designer Diane von Furstenberg's husband) is obsessed with that. So the company invests in innovative apps that it thinks have viral interactive potential — people-to-people platforms and shareability are its thing. Recognize this IAC portfolio candy?

  • Public companies: IAC has launched 10 of them, including Match. It's also got ANGI Home Services, the company behind Angie's List, HomeAdvisor, and Handy, to connect you with someone to build/fix/repair/clean the thing you can't.
  • Private startups: College Humor (aggressively shareable videos), Investopedia (financial info), Ask (yes, this used to be Ask Jeeves), The Daily Beast (news), and plenty more viral-ish digital media.

IAC acts like a venture capital firm... but it's a publicly-traded company. That's unique. Most VCs who got in early to Uber or Pinterest are companies that you can't invest in — only the extra-wealthy or institutions typically get access. Yet IAC has become the Berkshire Hathaway of tech, giving retail investors access to a portfolio committed to a specific theme: digital interaction.


A chain is only as strong as its weakest superhero blockbuster... Disney just announced that revenues hit a record high of $20B (up 33%), but profit dropped 51% in the 2nd quarter. Now that Disney's officially acquired Fox and most of Hulu to add to the Mouse family, you have to take the good with the bad:

  • The Good (mostly Disney): Avengers:Endgame became the best performer in movie history. And the ESPN and Discovery channels brought home big bucks.
  • The Bad (mostly Fox): We're huge Wolverine fans, but the most recent X-Men movie missed (badly). Also, a tournament-worth of cricket matches got rained out, hurting Fox's international revenues. Now Disney wants to resurrect Fox's Home Alone.

Here's what Disney actually does... Mickey lives off of 4 profit food groups:

  1. Media Networks (33% of revenue): Things at Disney's many cable TV channels (includes ESPN and ABC) were solid.
  2. Parks, Experiences, and Products (31%): Attendance fell 3% at Disney's US parks, but per-tourist spending jumped 10%. Could be the disturbingly large turkey legs.
  3. Studio Entertainment (18%): Re-butter the popcorn for Disney's hits on hits on hits. The movie studio set a record $3.8B revenue.
  4. Direct-to-consumer (18%): The home of Disney+, the much-hyped new streaming network that arrives in November.

Disney+ doesn't need to make money... (that's its secret). The new Netflix rival just needs to feed the Disney profit beast. Disney makes money everywhere, and that gives it a huge advantage over Netflix.

  • Netflix: $12.99/month, because Netflix has 1 product that needs to make all the profits.
  • Disney+: Can charge just $6.99/month because the more fans that fall in love with Coco, the more Disney can make money on theme parks, toys, and shows covered in Coco.

PS: The CEO just announced the mega package of Disney+, Hulu, and ESPN+ will cost $12.99/month.


Bankruptcy is the new black... Among department stores, Barneys was the fancy NYC option with just 22 locations and a cooler-than-us kind of vibe. It's a private company controlled by a hedge fund — now it's shutting 15 stores to enter Chapter 11 bankruptcy (Barneys' biggest locations will keep the doors open while a judge figures out what to do with it).

Makeover... Barneys has been here before, going through bankruptcy in the '90s. But if it re-emerges from bankruptcy (again), it will do so promising to focus on "experiences." You know, because us Millennials love experiential experiences. Barneys says it's adding more in-store restaurants and "entertainment," but we haven't heard what that includes exactly.


But do you own the real estate?... Barneys' core problem is that it didn't. Last year, the rent at Barneys' flagship Madison Ave. store jumped to $2.5M/month. Those costs can kill if you don't own the land. Meanwhile, rival Saks Fifth Ave may be suffering from the retail-pocalypse too, but it owns most of its stores (including the iconic 5th Ave. spot) — so it's benefiting from the price-pocalypse of rising real estate values.

What else we’re Snackin’
  • Splurge: American Airlines is dropping $90M for the naming rights to just the entranceway of LA's new football stadium
  • Harvest: Aurora Cannabis jumped 10% because its crops are yielding more pot than even they expected
  • New: Snap just issued $1B in convertible debt (bonds that can be turned into stock) to raise $$$ for new moves, like acquisitions
  • FTW: Bumble is going way beyond first-move dating apps — it's sponsoring an all-women Fortnite eSports team
  • Homey: Airbnb acquires Urbandoor to get into the extended-stay-corporate-client space
  • Spotlight: Tencent, the Chinese tech company, is buying 10% of Universal Music and helping lift Drake, T-Swift, and U2's presence in Asia
Snacks Daily Podcast
  • Shake Shack just surged 18%, so we got some napkins and bit deeper into why

Disclosure: Authors of this Snacks own shares of Roku.


Subscribe to Robinhood Snacks

Our Editorial Principles
Robinhood Financial LLC and Robinhood Crypto, LLC are wholly-owned subsidiaries of Robinhood Markets, Inc. Equities and options are offered to self-directed customers by Robinhood Financial. Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. Cryptocurrency trading is offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of FINRA or SIPC. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC insurance.

Getting “early access” to options or Web is defined as signing up with a valid email address for a spot in Robinhood Financial’s respective waitlist queues for Web or for options. Getting “early access” to Robinhood Crypto is defined as signing up with a valid email address for a spot in Robinhood Crypto’s waitlist queue. Early access to the waitlist for Web, options, or Robinhood Crypto should in no way be construed as confirmation that a brokerage account with Robinhood Financial has been opened or will even be approved for opening. Priority may be given to Robinhood Gold subscribers and existing customers of Robinhood Financial.

Free trading of stocks and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices or Web. Relevant SEC & FINRA fees may apply. Please see the Fee Schedule.

Robinhood Financial is currently registered in the following jurisdictions. This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Robinhood Financial is not registered. Additional information about your broker can be found by clicking here.

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. For more information please see Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information. These disclosures contain information on Robinhood Financial’s lending policies, interest charges, and the risks associated with margin accounts.

Investors should consider the investment objectives and unique risk profile of Exchange Traded Funds (ETFs) carefully before investing. ETFs are subject to risks similar to those of other diversified portfolios. Leveraged and Inverse ETFs may not be suitable for all investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies.

Although ETFs are designed to provide investment results that generally correspond to the performance of their respective underlying indices, they may not be able to exactly replicate the performance of the indices because of expenses and other factors. A prospectus contains this and other information about the ETF and should be read carefully before investing. Customers should obtain prospectuses from issuers and/or their third party agents who distribute and make prospectuses available for review. ETFs are required to distribute portfolio gains to shareholders at year end. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. ETF trading will also generate tax consequences. Additional regulatory guidance on Exchange Traded Products can be found by clicking here.

Options transactions may involve a high degree of risk. Please review the options disclosure document entitled the Characteristics and Risks of Standardized Options available through https://about.robinhood.com/legal or https://www.theocc.com to learn more about the risks associated with options trading.

The cash management program is expected to be offered by Robinhood Financial LLC. The cash management program, when operational, will be an added program to Robinhood brokerage accounts and will not be a separate account or a bank account. Robinhood Financial will provide additional information on the cash management program once it is operational to help customers, including those with “early access,” to determine if they want to add the program to their brokerage account.

Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed Robinhood account or any other account, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and customers may lose money, including their original investment. Robinhood Financial LLC, member FINRA/SIPC.

Testimonials may not be representative of the experience of other customers and are not guarantees of future performance or success. Robinhood Financial LLC, member FINRA/SIPC.

Third party information provided for product features, communications, and communications emanating from social media communities, market prices, data and other information available through Robinhood Markets, Inc., Robinhood Financial LLC or Robinhood Crypto, LLC are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any financial instrument or cryptocurrency or as an official confirmation of any transaction. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Any information about Robinhood Crypto on any Robinhood website (including www.robinhood.com and blog.robinhood.com), the Robinhood platform, e-mails, or any other communications, are meant for informational purposes only and are not intended as an offer, solicitation, or advertisement for Robinhood Crypto or any goods or services offered by Robinhood Crypto. The Robinhood website provides its users links to social media sites and email. The linked social media and email messages are pre-populated. However, these messages can be deleted or edited by users, who are under no obligation to send any pre-populated messages. Any comments or statements made herein do not reflect the views of Robinhood Markets Inc., Robinhood Financial LLC, Robinhood Crypto, LLC, or any of their subsidiaries or affiliates.

Investors should be aware that system response, execution price, speed, liquidity, market data, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors.

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.

Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. Trading in cryptocurrencies comes with significant risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. Cryptocurrency trading requires knowledge of cryptocurrency markets. In attempting to profit through cryptocurrency trading, you must compete with traders worldwide. You should have appropriate knowledge and experience before engaging in substantial cryptocurrency trading. Cryptocurrency trading may not generally be appropriate, particularly with funds drawn from retirement savings, student loans, mortgages, emergency funds, or funds set aside for other purposes. Cryptocurrency trading can lead to large and immediate financial losses. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a particular cryptocurrency suddenly drops, or if trading is halted due to recent news events, unusual trading activity, or changes in the underlying cryptocurrency system. Several federal agencies have also published advisory documents surrounding the risks of virtual currency. For more information see, the CFPB’s Consumer Advisory, the CFTC’s Customer Advisory, the SEC’s Investor Alert, and FINRA’s Investor Alert.

Robinhood Crypto, LLC has a seller of payment instruments license in Georgia, with reference number 61417.

Robinhood Crypto, LLC has a money transmitter license in New Jersey, with reference number 1803456-C22.

Please note that an Alaska money transmission license does not cover the transmission of virtual currency.

Check the background of Robinhood Financial LLC and Robinhood Securities, LLC on FINRA’s BrokerCheck.

Robinhood Terms & Conditions    Disclosure Library    Contact Us    FAQ

© 2019 Robinhood. All rights reserved.