Is the economy slowing? This Blog has never been a forum for discussing macro dynamics (read our monthly View From The Top instead). However, it probably won’t have escaped most readers’ attention that the stock market has concerned itself a lot with this topic in the past week or so. Sure, with many at the beach, trading volumes are markedly lower, exacerbating market moves and corresponding jitters. We will not attempt to answer the initial question but provide a few, slightly tongue-in-cheek, perspectives below.

The Paris Olympics ended on Sunday. By most accounts it was a marked success. It certainly should have been a boon for Airbnb. The company has estimated that nearly 400,000 guests stayed in properties listed on their platform over the event – that’s equivalent to filling five Olympic stadiums. We have made the case for platform business models that link disparate buyers and sellers since 2016 and believe there is significant runway still ahead, particularly as businesses such as Airbnb integrate AI more widely. Imagine a virtual concierge notionally able to fulfil your every need as a guest to a new city.

Summer is not only a good time for vacations, but also apparently for romance. Late last month, Match Group (owner of the Tinder and Hinge apps) hosted its regular quarterly earnings call for the investment community. During the event, it mentioned that downloads and usage of its services tended to peak in the third quarter of the year. Think not only summer flings but also the opportunities presented by the imminent back-to-school season, fresh starts and new classes.

Many, however, may prefer the company of animals to other humans. The pet economy received a massive boost during the pandemic, but we believe that there remains a significant long tail opportunity. As we first discussed in mid-2021 – not long after your author added a puppy to his household – more disposable income available to spend on pets combined with longer animal lifespans implies increased Dollar spend. Pet owners have many options, but one that is unlikely to pique the interest of many, we think, is a just-launched Dolce & Gabbana perfume for dogs. At a mere €99 per bottle, not only can users benefit from the “warm notes” of ylang ylang, musk and sandalwood, but also appreciate its container, which has a 24-carat gold-plated paw embedded on it. Even without such perfumed luxuries for pooches, the industry should still be experiencing 7% growth by decade-end.    

13 August 2024

The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Heptagon Capital is an investor in Airbnb and Match Group. The author of this piece has no personal direct investment in either business. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.

Click here to view all Blog posts.

Alex Gunz, Fund Manager

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.

Related Insights

Season 6, Post 39: Hanging out with the cyber experts
  • Featured Insights

Season 6, Post 39: Hanging out with the cyber experts

Alex Gunz Discusses Cybersecurity on the IBKR Podcast
  • Featured Insights

Alex Gunz Discusses Cybersecurity on the IBKR Podcast

Season 6, Post 38: Sightseeing with salmon
  • Featured Insights

Season 6, Post 38: Sightseeing with salmon

GET THE UPDATES

Sign up to our monthly email newsletter for the latest fund updates, webcasts and insights.