The adage “sex sells” couldn’t be more fitting for today’s topic – Grindr (GRND.NYSE), the world’s dominant gay ‘hookup’ app. Due to some fundamental differences between the gay male community and the heterosexual community, GRND benefits from some incredible network dynamics that place it among the best businesses in the world. It’s night and day between GRND and its heterosexual dating app peers, Match Group (MTCH.NAS) and Bumble (BMBL.NAS).

Similar to how we view Airbnb (ABNB.NAS) and Booking Holdings (BKNG.NAS) as royalties on global travel spend, we believe GRND is effectively a royalty on gay sex – and boy is business booming…