Oversold stocks we are buying now
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Happy Friday. It is the end of the week, end of the month. I personally couldn't be any happier to say goodbye to February. It's been a rough one for some of our favorite stocks. The S&P was actually only down about 3% in February, but stocks that we like to talk about

We're not so lucky. Tesla down nearly 30%, Bitcoin 20%, Robinhood 20% in just the last two weeks, Palantir 30% from its high, and of course, Nvidia down 13% in the past week. So today we're here to ruin another stock or maybe an entire sector just by talking about it.

Brace yourself, retail stocks. No, not really. We do have some stock pricks for companies that have already been hit. These are companies with hot trending products that have been oversold from both recession and tariff concerns, but whose sales should still be strong and now could be the opportunity to pick them up for cheap. Today on Dumb Money, we're going shopping for retail stocks.

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This is Dumb Money Live. Hey there, Dave here along with Chris and Jordan. We are Dumb Money. Welcome to Dumb Money Live. My job is to remind you to smash the like button for the almighty algorithm. While you're at it, why not post a review for us on your favorite platform? If you're listening on an Apple podcast right now, we don't have enough reviews. I feel like that would really help out the channel if you would just post a review for us. Anyway, uh,

Chris, Jordan, I'm not sure I have any free cash at the moment, but let's talk. What caught your eye in retail stocks? No cash, Dave. What? You got credit. Don't you have a little space on your line? I still have margin available. Yes. Yes. I'm not fully leveraged. And I think that, Chris, you're deleveraged a little bit too right now, right? Yeah.

I am. I am. I am. So as you guys know, I've been I've had this fluctuating mainly Tesla position right since the election. And I've mostly timed it right. But there have been moments where.

where that had been really painful. And last week was one of those moments, right? So, uh, God, let's just say last week was a seven figure, uh, week for Tesla and not in the right direction for me. So, uh,

I'm in the same boat. I have this stupid email that comes to me showing my net worth every day, like gain and loss and my net worth. I try not to look at individual stocks, but there were a couple emails where I was just like, oh, I can't do this anymore. I'm done. You know better than that. You're not supposed to look at your account on down days. That's our whole strategy. Just don't open up your account on down days. Yeah, no, I know.

So, no, I actually I'm fairly light in Tesla right now, by the way. I have a position. I feel like at this point moving forward, I can't not have a position in Tesla. So I have to protect myself on the long side. But the big issue with Tesla for me has been the reorientation back towards their automotive division. Right. So it became clear to me that the market is emphasizing Tesla.

whatever's happening in auto for Tesla, whether it's in China or Europe or here in the US. And it appears to be that over the course of the next few weeks to a couple of months, that will likely to continue to be the storyline.

not, not, not optimists. And you guys know that's the only thing I care about. Optimists is the only, only play right now. And everybody's talking about automotive sales and declining Europe sales and things that, that are not really our reason to be as aggressive in Tesla. Yeah, but it's annoying, Dave, because if something happens on the automotive front that does turn positive, it will also impact Tesla in a positive way. Right? So like I still have to have a,

upside insurance just in case. So you have upside insurance. You don't have any downside insurance that your only downside insurance is the fact that it's mainly options that will expire worthless. And you know that that's your insurance premium. Correct. Correct. So, so we, we've been, you know, I've been doing a tremendous amount of work on retail stocks since November, as I always do this season, because, you know, retail stocks either make it or break it holiday season. And,

And most of those trades have gone really well. The one that didn't go as well as I anticipated it to go was a long trade on Birkenstock. Birkenstock came out with earnings. Earnings were great, but they made a comment about tariffs. And just that comment alone kind of took over investor sentiment, the concern over tariffs. So, and I think maybe that has...

more impact maybe in some ways on Birkenstock because Birkenstock kind of controls the amount of inventory if they put out there. So they don't have the ability to really ramp up inventory at times when demand is increased because they just keep such a tight control over their inventory. So something like tariffs can really cut into their margins at a company like Birkenstock. That said, I think we have to

know that going forward on every retail stock they might kill earnings but one comment about you know what might or might not happen over the course of the next few quarters uh if tariffs uh come into play could meaningfully impact a price action on a stock regardless of whether or not the company crushes earnings

So I guess that's kind of the disclaimer before we start talking about a potential long on a retail stock here, right? Yeah, because all of them are at risk. All of them are absolutely at risk.

risk. So I want to talk about one of the stocks that has been on fire the past few years. That was, we, I want to say that I was maybe the first in the world to call. If you go back a couple of years ago with a single tweet, it was Abercrombie. Remember when Abercrombie started that turnaround and we absolutely nailed the turnaround and it went on this epic run. Now I had, I wasn't in Abercrombie the past couple of quarters. I kind of started to pull out of it. Thank goodness, because it,

Their last earnings call, which was about three months ago, was actually really positive.

but it wasn't positive enough for how far that stock had been stretched. And all the traders in Abercrombie decided to take profits. I think they kind of saw some of the risk that was at play with potential tariffs and kind of consumer sentiment there. Also, you know, there is a little bit of, you know, recessionary risk that people are discussing now again for the first time in a while. And they took Abercrombie down like,

40%. Is that right? 40, 45? Yeah, I'm trying to pull up a chart here. I'm not in my usual studio. Yeah. So it... Maybe 185 was the top and it's like at 100 bucks right now. Yeah. Yeah. So here's a beat up stock. There is a bunch of negative reporting around Abercrombie from sell side analysts. One of our...

Stable Circle 1919 in our Discord group was really kind to share a Morgan Stanley analyst earnings preview in the trade ideas and research channel of the Dumb Money Discord, which is what, Dave? DumbMoney.tv.

That's where you can get the invite to be a part of our Discord server, which is absolutely free. And if anyone ever asks you for money, we have to say it every time. If anyone ever asks you for money or to manage your money for you, it's not us. It's a scam because there's so many scams on there. And there's a lot of fake Chris Camillo accounts too. And I found a couple of mine too. So...

Don't believe anything you read on our Discord if it's coming from us, basically. So here's the stock that I think overcorrected on the downside that I am buying right now. It's Abercrombie, A&F, and it's because of Hollister, guys. I do not believe that Wall Street is seeing what is happening at Hollister. So what is happening at Hollister? Hollister...

is just seems to be crushing it right now with gen z uh all of my social read all of my comment data analysis

on TikTok, which is primarily what I do every day, over the past few months keeps bringing me back to Hollister. I shared, I, didn't I share some comments with you guys the other night? Didn't I text you like a couple of comments? We texted some screenshots, yeah. Yeah, I texted you some comments on Hollister. And there are a lot of things that this company allows

Now, the last couple years for A&F, the big driver has been Abercrombie, right? If you look at the Abercrombie data, it looks okay this quarter, but there's nothing particularly exciting at Abercrombie. Abercrombie, the company, is split between two brands, Abercrombie and Hollister.

Abercrombie is, I think, maybe 60% of the company, 50 to 60% of the company. Hollister, I think, is around 40-ish, maybe a little higher percent of the company. But they're more or less even, okay? So Abercrombie has been driving a lot of the momentum the past couple years. It seems to be flattening out a bit, but...

Hollister appears to be catching fire now, which is just... Do you remember Hollister stores? Remember those dark caves that were... So the reason... That was Hollister?

Yes. Those dark stores. Yeah. Have you, when's the last time you, I mean, I mean, it's not, I haven't been to a mall in forever, but was that, I thought that was a different brand. You know why that wasn't, that wasn't into a Hollister since I was in my twenties. I, I, I was doing research for dumb money at Hollister and I ended up buying this a few months ago. It is the warmest, most comfy, um,

I think I probably average 2X the age of the other people buying this hoodie with all the fur on it. I love it. I saw you wearing that the other day. Okay. I didn't even think it was Hollister. It's Hollister. I actually bought a couple things at Hollister. I don't want to admit it. Okay.

But no, the Hollister data is on fire. I want to show you guys like a glimpse. And this is what I shared with you over text the other night. I want to share just like a glimpse into social research because, you know, we talk about social research all the time in terms of common analysis. But one thing I want to highlight here with Hollister is the G trend, the Google trend analysis. Obviously, one of the things we do is track what people are searching for. And

One of the techniques that we use with Google trend analysis is when we see something, when we see an anomaly. So if you were to look at Google trends and you were to pull up a chart for a camo hoodie, right? Just C-A-M-O hoodie, or just a chart for camo generally, but camo hoodie specifically, you

You'll see over the course of five years, if we pull a global chart over five years, there's a massive spike that happened over the past few months. So this holiday season, camo hoodie had like 2x the spike in search traffic that we've seen over the past five years. So you see something like that. And that's something that I discovered recently.

Because I was initially studying TikTok comments and I saw a lot of comments about camo and the camo hoodie. And I said, let's see if this is representative across all the world search traffic. And when I pulled the Google search chart, it was representative. OK, there it is. That is that's camo. But can we pull for camo hoodie? Because it's even more pronounced.

Now, what's fascinating is when you see something like this, you then want to ask yourself, who are the beneficiaries of that trend?

So what I then do is I narrow the dates, okay, on the trend from five years to 90 days, okay, to just the last three months. And once I do that, I look at related queries. So of the people that are searching, so there's camo hoodie, right? So we see this huge spike, right?

A massive demand for camo hoodies. Camo generally, as you saw, was trending, okay? But the camo hoodies is trending even harder. But who's selling camo hoodies? So when I look at the prior 90 days, just the last 90 days for camo hoodie, and then I go to related queries, and I look at the top 10 related queries for camo hoodie,

There's only two brands that show up, which is wild. And guess what those two brands are? Abercrombie and Hollister camo hoodie. And then variations of those keywords. It's fair. It's pretty rare that when you have a two brand company,

And you have a trend that the beneficiary of that trend just happens to be both of the brands that sit underneath that umbrella company. So this is just one part of the Abercrombie thesis. It's not like this camo hoodie is driving, you know, just their sales this last quarter. Hollister, the data looks really good.

for the holiday season but what actually excites me the most about hollister right now is not what we see in the hard data for the holiday season because i believe the quarter ended end of december the one where they're about to announce i could be wrong i think it's like going through the end of december it doesn't even include like january or february i could be wrong about that uh but what excites me most about hollister

is the comment data that I'm seeing with the spring line. This is crazy that I'm like a middle-aged man talking about the spring fashion line. You've become a real expert, Juan. But I'm telling you guys, I've been watching TikTok videos on Hollister and these Gen Z girls are

Absolutely love the spring line at Hollister right now. So that leads me to believe that the company is starting to see that sell through that early self sell through at Hollister, which I'm seeing a lot of sellouts happen right now.

Okay. And I'm hoping, I'm hoping that they reflect that in their guidance and in their comments on the earnings call. Now we don't know for sure that they will, but to

To me, that's the alpha we look for as social ARB investors. We're looking for alpha that nobody else sees. So Wall Street will not see that in the credit card data. By the way, the credit card transaction data that Wall Street does see recently, I think, turned more negative because I get that data. Although Wall Street still seems to be down and out on Abercrombie. But what they don't see is

is the comment data on the spring merch, at least at Hollister, which seems to be exceptionally positive. So that's kind of like a differentiated alpha that we'll see if it comes out on earnings next week. But I like the risk reward. I like it. I like it enough that it's the stock that I'm buying most of after this huge drop, 40% drop.

40%. Okay. So the expectations are low. So we love it when the expectations are really low and we have alpha that seems to indicate something meaningfully positive that might not be known by the market at large or Wall Street. So that's generally my thesis.

on Abercrombie and why I'm trading it long into earnings next week. So it is your biggest of these retail trades. Do you have other examples of alpha for companies that have been beaten down that have perhaps a better sentiment among shoppers and better credit card data? Any?

I'm going to pass to Jordan here because I think Jordan has spent some time on this stock. Our community has, for a very long time, loved Shark Ninja. I've blown them off. I regret that now. I completely regret it. Even Jordan was nudging me the past year

on Shark Ninja and I didn't really understand why. I was like, this is such a tiny, I don't get it. I missed it. I miss Shark Ninja. Now, what makes me really sick about missing out on a lot of the Shark Ninja move is that

In my hallway downstairs are two big boxes. One of them was a gift we had for my daughter, my teenage daughter. It was a shark. It was the smoothie blender thing that makes ice cream that I guess all these kids are getting. But then we actually upgraded it and got the one because we thought we got the wrong one. We got the one. It's the swirl. So now they have one that's even...

better one. It's a swirl. Yeah. The new one. Yeah. It's like a pull handle swirl. Yeah. Yeah. And, and when I, when I started doing like social research into shark Ninja the past couple of months, I realized that, you know what? I think I underestimated just how damn good that company is at both one product market fit

engineering and marketing. Like there's something really special going on at Shark Ninja. And it just caught me by surprise that

My bad. By the way, dumb money community, you guys have been on this from the very beginning. And I am the boomer here that just ignored you time and time again. And now I'm starting to catch up. They just announced earnings a couple weeks ago. So we kind of missed, you know, and I don't think it did much, all that much on earnings.

I think part of the issue with Shark Ninja, Jordan, would you agree with this, is that they are probably one of the most sensitive to tariff risk, right? Yeah, I just think right now is not the time. I'm not currently in Shark Ninja. I bounced. Made money on it. It was great. I'm not in it right now. I'm not really into retail right now. I mean, we just saw the Fed revise GDP growth to negative. And...

Okay, but basically we've got the government implementing austerity. We've got more inflation coming. I don't know if this is the right time to look into retail stocks. But that's what's so beautiful is everything you're saying is technically correct. But does it matter if you have a retail stock that is the exception to the rule and got beaten up for good reason along with the entire sector?

If you look at Shark Ninja, I mean, Shark Ninja is not really beaten up. Yeah, I mean, it's off the highs. I'm not talking about Shark Ninja. I was just... Dave asked the question about are there others that... No, I'm with you on Abercrombie. I bought Abercrombie also. I think they're a great value down here. So yeah, I mean, as far as Shark Ninja goes, I am...

you know i'm hoping it goes down because i'd like to be back into it um i think it's a great company i think like you said they're killing it as far as meeting the consumer with what they want um yeah and across multiple product lines too they're not just they're not just the creamy or the version two of that they also make you know vacuums and all sorts i mean they're all sorts of kitchen appliances they're a great company

Correct. And they're up 100% in the past year and only down a little bit in this past month period. So if you're unlike Chris and you actually look at price, this is a company that has not had this big pullback. There's not the same fear in this company apparently.

By the way, getting back to Abercrombie, some of the other data points I look at, obviously, I analyze the checkout page, web traffic on Abercrombie and Hollister. Abercrombie looks kind of like up slightly, but generally pretty much flat year over year. So nothing super interesting going on there. But with Hollister,

Hollister is up meaningfully year over year with the checkout page data. Also, Hollister search traffic on Amazon, I'm staring at it right now, it looks to be up about 20% year over year, 20 to 25% year over year in terms of the search traffic. Some people in our community have been discussing Hollister.

Google search trend data. We kind of looked a little bit, we looked at that a lot. In fact, if you just pull up Hollister, just the brand Hollister on Google Trends, you'll see that that's up. Now, we were looking specifically at the camo hoodie, which is up huge, which is like one of their key products. But Hollister generally is up. So if you just pull that

on Google search trends. So Hollister is my pick. Obviously it's roughly 40, 45% of Abercrombie earnings are next week. Yeah, look at that Google search trend data. It's very similar to kind of what I'm seeing with the web traffic data. I also pull app data. So there is a Hollister app and an Abercrombie app

And, you know, this is what makes data analysis so tough these days is that because there's such a migration to apps, sometimes you won't see the full data being represented anymore on web traffic. But in the case of Hollister, I'm showing equally good jumps in traffic.

app data for Hollister in addition to web traffic data, in addition to G-trend data, in addition to search traffic data on Amazon. And of course, the thesis was born out of an influx of positive feedback

conversational data that I was picking up off of TikTok video comments on Hollister. So I really like it when like all the data is aligned and I don't have any data sources that are conflictive with the thesis, right? And so at least with half the company, Hollister, half the company, it appears to be a positive. Risk factors are

There is still a tariff risk factor, right? Let's see what they say on the earnings call as it relates to that. There is still, as Jordan just mentioned, consumer recessionary concern issues. No doubt about that. In fact, what you will see is one of the most frequent comments on Hollister comment data on TikTok. TikTok. TikTok. TikTok. TikTok.

is people saying, I love this brand so much. Oh, I love that item. I love that blouse. I love that shirt, that dress, that whatever, those jeans. But Hollister is just so darn expensive, like $60 for a tank top or whatever. Now, I don't think of Hollister as being expensive, but evidently their target market

sees them as being expensive but they love them but jordan i'm starting to see some of the rub there with with pricing yeah and i i think one of the notes that wall street had uh that we should pay attention to i think it might be in that morgan stanley note that's on our discord

is that they did see an influx of promotional activity in January. So sometimes when we see like an uptick in foot traffic, web traffic, sometimes that's because of promotional activity.

stuff happening at the brand. So you need to factor that in as a risk factor. But when we see an increase in positive comment data and search data, the search is not influenced by promotional activity, sales, right, and discounts. That's kind of more core, you know, organic interest.

in the brand so I like almost everything that I'm seeing the one thing I didn't have time to do which is just ridiculous I always do this I did not do a store check uh I did not do any in in-person store checks on Hollister have a store in your mall absolutely they have a store Galleria and that's why I didn't do it because I got to drive 20 minutes yeah they don't have it they don't have it the one close to you the

North Park? It's not a good fit for North Park. I mean, Hollister. They've got an Abercrombie, don't they? Yeah, they used to have. I'm pretty sure it's the Abercrombie there that was the dark store. I'm not even sure they have an Abercrombie anymore. North Park has become like Rodeo Drive of malls. It makes sense. Yeah, I mean, it's expensive real estate. You're going to be in Chris's zip code. You can't have a Hollister. It's your zip code, Dave. I live in Mexico now.

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power to do. Visit bankofamerica.com slash banking for business. Bank of America is proud to be the official bank sponsor of FIFA World Cup 2026. Oh, Jordan, your house is for sale. Did you know that? Oh, I noticed that. Yeah, I mean, I noticed that they were doing

do you know what they're asking for it and i get you know i still get emails from the from the city about like whenever they're messing with the fire alarm so i guess they're doing some work and like turning on and off you know what they're asking i don't want to know let me guess let me guess uh i'm gonna guess 2.1 oh they're asking three three

Oh, that's insane. They're going to get it. They're going to get it. They're going to get it. They will absolutely get 3-3. Jordan, they're getting that just for lot value right now on our street. Yeah, lot values right now I don't really understand because even here where I live, which is like in the middle of nowhere, they're winning like 850 grand for lots. And I'm like, what? It's not that kind of place. Dude, Jordan, they're building a spec house next door to me.

regular lot spec house you know they'll do it nice don't get me wrong but like i've seen like it's just a normal house right just like a normal neighborhood spec house do you know what they're asking just guess yeah i'm well now i'm gonna guess four um i'm gonna guess seven

Are you looking at it? Is that why? They're asking 7-2. 7-3. 7-2-9-5 for a spec house with only renderings of what it might look like. It's insane. I'm assuming those are renderings. They look pretty real. I'm not going to show the map because it reveals where Chris lives, but...

Are you sure Jordan's is still for sale? It's not showing up on Zillow. At 3.3, it's a steal. It's actually a steal. Did it just not show up on Zillow yet? It's not on Zillow, and it's been for sale for at least a week. It would be on Zillow. No, there's a house across the street from me that's for sale for over a week, and since they're moving stuff out of it, they're not putting it on the MLS, but it's like they have a sign up front for a week. Um...

I must live on a less ritzy block than you, Chris, because the only house for sale in my block is only 4-3.

Yeah, but it's probably closer. It's a 90s house. The land value. This is getting so crazy. It's insane. This is the part of the show where we're no longer talking about anything. This is just listening in on our Zoom call of stuff that we would be talking about if we weren't on YouTube. Okay, I have one other stock that I bought more of after the drop. Okay, time out. First, back to Abercrombie. I was not convinced until...

hearing you talk about it. And I don't think Abercrombie is a stock that I want to hold on to long-term. So I'm thinking maybe just playing some options.

Okay. Here's my issue with options in Abercrombie. They're, they're stupid expensive. Just the premiums are ridiculous. They're stupid expensive guys. They're so to buy, like, I don't know, like you, you, you need like a five to 6% move just to break even on the hundreds. Um, now obviously that could happen, but it just feels expensive to me. I don't know. It just feels expensive. Um, I, I,

I actually think

I actually think based on what I'm seeing, I feel like, by the way, we're not financial advisors. We're just talking through what we're doing, what we would do. Like this is not advice for what you should do because your risks are different than our risk guys. You know that. Don't mirror any of these trades. This is just like an idea for you to go run with and research and talk to your financial advisor. If it makes sense for you, make your own decisions. This is not suggesting you do this. But Dave, I think that the downside is like relatively low.

on an Abercrombie here at the current, like after that drop and what I think is going on at Hollister. Now the upside with this crazy market that we're in, the market to me is the biggest risk. So like having options, this thing could be trading at 94 before earnings because it could drop that much just based on the market. And if the market continues being volatile, especially to the downside next

next week. They won't care what kind of earnings Abercrombie comes out with, right? And so that's your risk on the option side. But on the stock side, it's like, I mean, this stock is trading down so much at this point. And by the way, there is an international story building here as well.

Okay. So there's an international story. This is a kind of like an Americana brand. They're obviously expanding, you know, into China. I like it. And listen, my, you know, I'm very tech heavy, but I like to have some balance here and I'm back in Abercrombie in a pretty big way. I mean, I'm in there in a pretty big way. So we'll see what happens next week. Yeah.

This chart where it completely fell right here, just that's January. Yeah. Yeah. So also, you know what, guys? I feel like this market, the entire market is so focused on technology.

On Tesla right now, on Palantir, on NVIDIA, and like big tech. This market is so consumed by Trump and the administration and, you know... And the Mag7 stocks are kind of at top of mind and Hollister is...

Nobody's talking about Hollister. Nobody is. No one's talking about Hollister. No one's talking about Abercrombie right now. This is so off radar that I'm hoping that maybe it kind of...

Maybe it catches people by surprise. We'll see. I don't care because I really like what they're doing going into the spring. So even if I don't get the reaction I really want out of earnings, I'm comfortable being an Abercrombie like over the course of the next quarter.

quarter or so if these Trends continue so for me it's not like necessarily like just an earnings trade this is a very similar setup to Corsair remember Corsair by the way those of y'all didn't watch our course Eric that was like one of our biggest picks for the past few months it played out so beautifully I didn't really care if Corsair had a huge quarter earnings which they did

because I was more confident in how the next quarter was going to play out for them. To the degree that they actually spoke about that on their earnings report would just be a bonus. But that worked out beautifully because I wasn't reliant on a blockbuster earnings report. This feels like a similar thing.

setup and thesis. No one's really thinking about Corsair. They weren't, right? No one's really thinking about Abercrombie and Hollister right now in this environment. The only thing they're thinking about is a negative because of Terrace. And by the way, I want to say I pulled data on related to Terrace and Abercrombie from their last earnings call. I could be wrong, but I think they've actually migrated a lot of their manufacturing outside of China on

crombie facturing China I I think uh I think they're doing a lot of their manufacturing outside of China I'll have to find the data or my reference point to that um it might be in the last earnings

report, but still all the whole sector gets locked. It doesn't matter. You could source 80% of your stuff out of China or 10%. You're going to get killed the same initially when it comes to tariff concerns, because the market trades the sector down. They're like apparel relies heavily on China. So all the apparel stocks get killed, right? Appliances rely heavily on Mexico and

And China. So we're just going to kill it, even if you happen to be an appliance company that has a unique source for manufacturing. Now, some of the issues with this tariff stuff, Jordan, is it's not just about China and Mexico anymore. It's like, hey, we're going to tariff everything from everywhere, right? So it almost doesn't even matter where you're making it anymore. The tariffs are going to crush you. By the way, Jordan, how do you, because I know you're more on the macro side.

How do you think these tariffs are actually going to play out? Do you think he'll step back? Do you think he'll walk them back over the next few weeks? I don't have any idea, nor does anybody else.

I think, no, I'm serious. I think Donald Trump could change his mind at any time. And that's the danger in trying to read too much into the situation. I think that it warrants caution. I wouldn't think that it warrants optimism that he could change his mind at any minute. So that's kind of my read. But my bigger concern is just the general austerity in the government, right? So the government's pulling back spending.

uh or at least they're trying to pull back spending we'll see how successful that is but that's not a positive read for gdp no it's not and that that would be the biggest risk factor and i think that risk factor is it might not even come out on earnings but it's just going to kill the kill the market generally right yeah um

There's no doubt like I actually this is why I'm getting to a point now, guys, where I like to put my trades in if they are an earnings trade, like right before earnings. I don't like to take on that market risk right now. The market risk is is it's too much.

So during the latest earnings call, I'm just getting the information here. The CEO and CFO discussed aspects of their operations, but did not mention moving manufacturing away from China. Instead, they focused on supply chain agility and cost management, emphasizing their strength and sourcing and supply chain team, noting that quote, we have very strong sourcing and supply team where they are agile, working with teams every week, responding to business, uh,

So yeah, they didn't, at least on the most recent earnings call. Okay, Dave, I have the new chat GPT 4.5 because I'm paying 200 bucks a month. And here's what it says. In 2023, Abercrombie expanded its supplier assessment program to include laundries tier two and the top 50 fabric mills tier three across 11 countries.

Bangladesh, Cambodia, China, Guatemala, India, Indonesia, Mexico, South Korea, Sri Lanka, Turkey, and Vietnam. Additionally, the company has partnered with Italian... Oh, forget about that. That's unrelated. It seems like they have made strides in diversifying their supply chain. So...

Yes, and I have the latest Grok. I'm not paying $200 a month for Chachi PT, but Grok also has the same information. They have changed their product manufacturing in Vietnam, India, China, Philippines, Indonesia, Bangladesh. Notably, Abercrombie items appear to be made in China more for Abercrombie than Hollister, with Vietnam standing out as the major hub for both brands.

Okay. Can we switch themes for a minute? Because I have to go in a few minutes and there's one more stock I want to talk about that I doubled down on this drop. I doubled down on Robinhood. Okay. And to no one's surprise, this has been one of our biggest investments of the past year. It's a stock that we continue to go in deeper and deeper on.

Dave, when I saw the comment from the lot, you know, I was already so hyped on Hood,

the past couple of quarters. We had a phone call and then I saw the tweet about our phone call. Yeah. So every single thesis that we have about this administration leads us to one place, Robin Hood, Robin Hood, Robin Hood. Like Robin Hood seems to be the biggest beneficiary of everything happening in the world right now. Okay. And so when I

I heard that Vlad is now hinting that Robin Hood could eventually become like a real estate broker. You could eventually buy your house through Robin Hood.

I thought his level of aggression on how broad he was going to take Robin Hood over the next five years was like sky high. Now he's going to the moon. He literally said he wants to have a share of every financial decision you make, Robin Hood wants to be a part of. Yeah.

Yeah. And what is, what is, what is the biggest financial transaction for most people? It is the purchase of their home. How could they not? I'm surprised that we didn't like see this coming, that they would at least hint at being in and, and who knows how long it would take to actually, uh,

come to fruition if it ever does, but it just seems natural for Robinhood to get into the real estate game. So Robinhood wants to be your bank. They want to be your debit card. They want to be your credit card. They want to be your stock broker. They want to be your crypto broker. They want to lend you money. They want you to buy your next house through Robinhood where they'll probably pay you money to sell your house through Robinhood with zero commission. Can you imagine that? Yeah.

Or as we talked about, what if they give you 3% cash back on the sale of your home if you use them as your mortgage lender? By the way, take the money you save selling your home and not paying a commission to gamble on Robinhood because they're going to be a prediction market. And Vlad seems to think that all sports wagering is really just prediction market. So it should be legal for them to do as well. So

They are going to anything that touches money or finance in any way Robin Hood wants to own. That sounds like a bigger than $40 billion company to me. What do you think, guys? I completely agree. That is why I got into Robin Hood aggressively, and I feel like I'm not in enough.

The only negative on Robinhood right now is that we're seeing a massive pull back in the crypto market. The meme coin sector is getting slaughtered, and that is a really high margin sector, I believe, for Robinhood. So that's not good in the short term.

term for Robinhood, but I don't really care about the short-term kind of fluctuations for Robinhood. For me, this is like a multi-year social arbitrate. I believe that Robinhood at some point in the next 20 years will be the largest financial institution in the world. Period. I believe that.

I believe it will be larger than Schwab, be larger than Goldman, be larger than Bank of America, be larger than Morgan Stanley. I believe it will be the largest financial institution in the world within 20 years. And I don't think people are thinking- And that's primarily just because they're so aggressive with getting into new markets and fostering those markets once they're in them, right? What's the one thing that we love more than anything else about Tesla?

What's Tesla's biggest advantage by a billion miles is that Elon manages his companies like a startup, no matter how big they get. There's only one other company that I could think of that operates like that, with that same mentality. And there's probably others, but the one that comes to mind is Robinhood.

And it's the same mentality, you know, that's in our DNA. Like for those of y'all don't know us, like we're early stage startup operators. That's, that's what we've been doing, uh,

essentially our entire career outside of investing. So we have a deep respect for companies that are willing to get aggressive and always maintain that startup mindset because we've also, all three, have had the privilege of working at very large, crappy, incumbent companies. And there's just, they just can't do it. They just can't do it. That's an advantage that I will double down on all day long.

So those are my two picks, Abercrombie and Robinhood. Those are the two stocks that I went in meaningfully deeper on as they continued to drop through this market correction. And one of them kind of short-term-ish, I would say Abercrombie is for the next quarter. Quarter or so. Or so. And just, I mean, what are you, I mean, not dollar amount, but like,

percentage of portfolio, is it like 1%? Is it 5%? How heavy are you when you say you're getting in heavy? What are you talking? Robinhood, I think, is my second largest position right now in my portfolio. And, you know, Abercrombie is just kind of a short-term thing, but it's meaningful. Like it's, you know, one of the larger holdings in my portfolio is Abercrombie now as well.

But also note that I'm not levered like normal. I'm not 70% to 90% levered. I'm like 15% to 20% levered in my portfolio right now. And I think, by the way, we talk about this all the time. At times of volatility, when you really don't have a good grasp on what's going to happen day to day, week to week, you have to be really careful with leverage, like exceptionally careful. So for me to only be 15% levered,

says a lot because Dave when's the last time I was only 15% levered that's like 50 is like a low number for you yeah

Not getting margin call notices on a daily basis is very rare for you. Well, probably because so much of my money's tied up in private robot companies right now that I feel like that's my leverage. That's the crazy thing that I'm doing right now. Right now, Robinhood is the sixth largest holding in my portfolio, and I wish it were about fourth. That's kind of where I wish I could get to be. And who knows? Maybe just that stock going up will have that effect. But

I need more Robin Hood. I need to go. Okay. You have a flight to catch. I have to run. I have to run. All right. We're going to wrap this up then. And thank you guys so much for watching. And we'll, I mean, Chris, I know you love to be on an airplane and check comments on our YouTube videos. So I'm sure we'll...

You can find us there and you can find us on dumbmoney.tv slash discord to be a part of the discord server. And that's going to do it for this one. We're Dumb Money. Thanks for watching. Have a great weekend.