Becker Private Equity & Business Podcast Summary Episode: “Porn, Pills, & More” | Released: June 30, 2025
Introduction
In the June 30, 2025 episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into the intriguing intersection of the adult entertainment and pharmaceutical sectors, aptly titled “Porn, Pills, & More.” This episode offers a comprehensive analysis of key stocks within these industries, explores the dynamics shaping their performance, and provides insightful observations on market trends and cultural shifts.
Key Stock Performances
1. Hims & Hers: A Stellar Performer
Scott begins the discussion by highlighting Hims & Hers, a prominent player in the wellness and pharmaceutical space. Demonstrating remarkable growth, Hims & Hers has surged 104% year-to-date (YTD).
“First, the leader in all this is Hims and Hers, which is up 104% year to date. They are knocking it out of the park.”
— Scott Becker [02:15]
Becker emphasizes that Hims & Hers has significantly expanded beyond its initial focus on erectile dysfunction medications, diversifying its product offerings to cater to a broader health and wellness market. This strategic growth has positioned the company as a leader in its sector, attracting substantial investor interest.
2. Rick’s Hospitality: Struggling Amidst Market Shifts
Contrasting Hims & Hers’ success, Scott examines Rick’s Hospitality (also referred to as Rick’s Entertainment), a company operating in the gentlemen’s club sector. Unfortunately, Rick’s Hospitality has faced challenges, with its stock declining by 32% YTD.
“Rick's Hospitality, well named hospitality, is down 32% year to date.”
— Scott Becker [05:45]
Becker speculates on potential reasons for this downturn, including:
- Demographic Shifts: An aging customer base may be reducing patronage.
- Labor Challenges: Difficulties in recruiting and retaining female employees may be impacting operations.
- Cultural Changes: Evolving societal attitudes toward adult entertainment venues could be affecting consumer behavior.
Despite Rick’s attempts to navigate these challenges, the company’s performance indicates significant struggles in maintaining its market position.
3. Grindr: Capitalizing on Digital Connections
Shifting focus to the digital arena, Scott discusses Grindr, a leading hookup app. Unlike Rick’s Hospitality, Grindr has enjoyed a robust performance, with its stock increasing by 25% YTD.
“Grindr's up 25 year to date.”
— Scott Becker [11:30]
Becker draws a comparison between Grindr and Hims & Hers, suggesting that digital platforms may be better positioned to adapt to contemporary consumer preferences. The success of Grindr underscores a broader trend towards online interactions and services, which may be contributing to its strong market performance relative to traditional establishments like Rick’s Hospitality.
The Online Pornography Industry: A Private Realm
In his analysis, Scott touches upon the limited presence of publicly traded companies in the online pornography sector. He notes that most successful enterprises in this space remain privately held, with Vivid Entertainment being a notable exception.
“Most of the really successful online pornography companies, the only... Vivid Entertainments. The others are not publicly traded. They are privately held.”
— Scott Becker [08:50]
Becker explains the scarcity of publicly traded pornography companies, attributing it to factors such as:
- Privacy Concerns: The sensitive nature of the content may deter companies from going public.
- Market Dynamics: Limited investor appetite and regulatory challenges could restrict public offerings.
- Competition: Dominance by a few key players like Vivid Entertainment makes it difficult for new entrants to thrive publicly.
Cultural Shifts and Market Implications
Scott posits that the divergent performances of Hims & Hers, Grindr, and Rick’s Hospitality may reflect broader cultural shifts. The preference for digital connections over traditional venues could indicate changing consumer behaviors and expectations.
“Maybe there's been a change in culture. We're easier to hook up than go to the gentleman's clubs.”
— Scott Becker [14:20]
This observation suggests that companies embracing digital transformation and adapting to modern lifestyles are better positioned to achieve growth and investor confidence.
Conclusion and Takeaways
In wrapping up the episode, Scott offers key takeaways:
-
Hims & Hers’ Strategic Expansion: The company has successfully built a substantial business beyond its initial products, signaling strong management and market adaptability.
“Hims and Hers has built a very serious company beyond these are all joking aside.”
— Scott Becker [25:00] -
Private Dominance in Pornography: The adult entertainment industry remains largely dominated by privately held companies, with very few publicly traded entities like Vivid Entertainment and Playboy (which Scott notes may have gone private as well).
“All the major pornography companies are mostly private. Playboy and Rick’s being exceptions to that. Or it was. I think Playboy went private too.”
— Scott Becker [23:10]
Scott concludes by encouraging listeners to consider these insights when evaluating investment opportunities in these intertwined sectors, highlighting the importance of understanding both market performance and cultural trends.
Final Thoughts
This episode of the Becker Private Equity & Business Podcast provides a nuanced exploration of the intersecting worlds of adult entertainment and pharmaceuticals. Scott Becker offers valuable analysis on the performance of key companies, sheds light on the challenges faced by traditional establishments in a rapidly digitizing world, and underscores the significance of cultural shifts in shaping market dynamics. Whether you’re an investor, industry professional, or simply curious about these sectors, this episode offers rich insights and thoughtful observations.
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