#1 on Amazon... and Almost No One Owns the Stock

**Dave** (0:00)
It has been a wild few weeks in the stock market. War in Iran, oil tankers are on fire, stocks are down, then stocks are up, and then stocks are down again. Lots of uncertainty. So we're going to take this moment and go back to our roots to talk about a pure social arb trade. There's a product that is a number one bestseller on Amazon right now in a pretty big category. And it's not just number one, it's also number two and number eight and number 11 And I think it's number 23 as well this morning. It's apparently a massive trend from a brand that I've never heard of. It's owned by a small public company that I'm sure you've never heard of. And today on Dumb Money, we're going to share our trade and why we think this trend might be investible. It's number one on Amazon, and almost no one owns the stock. This is Dumb Money Live.
Hey there, Dave here along with Chris and Jordan. We are Dumb Money. Welcome to Dumb Money Live. Quick reminder, if you don't mind, smash the like button for the YouTube algorithm. It really does help us out. Chris, Jordan, I don't know where to begin this morning. I don't know if you want to reveal the product and the stock, or if you want to talk about how we found the product and then connected the dots to this public company.

**Chris** (1:10)
Dave, I think it's really important to start by saying, whenever we do one of these things, this is a relatively small stock. We usually talk about it. People buy it. It gets overinflated within minutes, and then everybody loses their money because the stock jumps irrationally. If you want to do that, you're likely making a huge mistake. So we're not financial advisors. We're just sharing an idea with you. I own the company. I'm not planning to sell the company anytime soon until I see this trade through. But really be careful, guys, because once we reveal the name of the company, don't go try to do something stupid. I just know it's going to happen anyway.

**Dave** (1:52)
And just looking at the numbers, the company's stock is a $535 million market cap, so a half a billion dollars, not a big company. The range over the past year has, it's gone up and down, but it's basically flat.
It's kind of a weird company. It's a business development company that just buys up smaller companies, right?

**Chris** (2:17)
Yes, and there are risks involved, so we're going to walk through the risk for sure on today's episode. So let's talk about the... Guys, I love this. This is this old school social arb as it gets, other than maybe us talking about another shoe company.

**Dave** (2:33)
I do have that TikTok video you sent if you want to play that too.

**Chris** (2:38)
We should play that in a minute, but I think going back to how we surface these types of trades, one of the many things that I do on a daily, weekly basis, I'm constantly looking at things like the iOS charts. Is there a new app that's trending? I search essentially every category on Amazon weekly, going back 15 years, to see if there's any new trending products. And the dream is that there's a product that comes out of nowhere that starts to heavily trend on Amazon. And it might be because of a TikTok viral video, which was the case with this product. And it's made by a small publicly traded company, and it's the only thing they make. Well, this isn't that pure of a social arb trade, but this is a trending product on Amazon caused by virality that has happened over the past month on TikTok. And the product is a small private company that just happens to be owned by a really weird publicly traded holding company that owns, I think, 24, 25 different private companies. So we'll walk through the degree to which this company might or might not be able to move the needle. But the product, I mean, we have traded a product like this so many times over the past 15 years.
These products just keep coming back over and over again. And the thing that's so interesting this time is that there's not even anything that knew or differentiated about this product from past versions of it. And the product is this. It's this, right? Do you know how many stores I had to go to to find this? I had to go to seven stores, sell out after sell out, to try to actually find one of these neatoes. They're essentially just like squishies. They're like these squishy toys. They've been around forever. But something about this brand neato, they make them in different textures and different firmness, and they're just more differentiated than the ones that have been made in the past. And I don't know what else to say, but people like them better. And they have been going nuts on TikTok over the past two weeks specifically. Now, interestingly enough, every single store clerk that I talked to this week told me the same thing. And they said that people started coming in asking for these in droves, starting about a week ago. So even though this product has been made for years, and they kind of started trending a little bit during the holiday season, it's just in the last one to two weeks that it really started going hyper viral due to a bunch of TikTok videos.