Welcome to another edition of TSOH Weekly Roundup.
Each update features a Chart of the Week, along with a brief discussion on three news items relevant to companies in the TSOH investable universe.
Chart Of The Week (from “Is Ralph Lauren Still Relevant?”)
Three Notable Items
“Bumble in $1.3 Billion Deal With Ithaca Holdings”
While I’ve spent less time writing about online dating in recent quarters, I continue to monitor industry developments. This week, Bumble agreed to be taken private in an all-cash deal for ~$1.3 billion ($6.05 per share) - a nice bump from the ~$2.5 per share that the stock traded at a few weeks ago, but also ~90% below the 2021 highs. Note that the company repurchased ~$370 million of stock during 2023 and 2024 at an average cost of ~$9.75 per share – a roughly 60% premium to the deal price that management just agreed to.
“The deal marks a dramatic turn for Bumble, which was valued at $14 billion when it went public. The app was founded in 2014 by Wolfe Herd, a former Tinder cofounder, on the premise that only women could make the first move on the app. But Bumble, like many of its dating-app peers, suffered user declines as young people have grown fatigued with online dating.”
“How Zuckerberg is building superintelligence”
An interview on the Cheeky Pint podcast with Mark Zuckerberg and Alexander Wang, focused on Muse and model development at MSL.
Zuck: “This is a big step forward. With Muse Spark, we were very happy with the performance we were able to deliver as we were getting up to this point, but this is the beginning of MSL being at the frontier. These models are quite competitive with the best models that are out there.”
“Netflix Eliminates About 1,000 Jobs in Biggest Cuts Since 2022”
In advance of next week’s Q3 FY26 earnings report, Netflix announced job cuts impacting ~6% of its workforce. The culprit is underwhelming growth, with management struggling at the moment to find meaningful remedies, particularly to address relatively lackluster engagement trends. Personally, I find the current period reminiscent of Netflix’s challenges in 1H 2022. (The company announced last night that Peter Rice has replaced Bela Bajaria.)
“Co-Chief Executives Greg Peters and Ted Sarandos said in an email to employees Wednesday that the bulk of cuts would be in the streaming giant’s product, tech, legal and HR teams. ‘Our mission - to entertain the world - is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,’ they told employees.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Monday’s research report will be an update on Build-A-Bear (BBW) – a company that has seen its stock price fall roughly two-thirds from the early 2026 highs, and which currently trades at less than 5x FY26e EV/EBIT.
Have a great weekend!
NOTE - This is not investment advice. Do your own due diligence.
I make no representation, warranty, or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information presented in this report. Assumptions, opinions, and estimates expressed in this report constitute my judgment as of the date thereof and are subject to change without notice. Projections are based on a number of assumptions, and there is no guarantee that they will be achieved. TSOH Investment Research is not acting as your advisor or in any fiduciary capacity.