World’s ugliest shoes aren’t having a pretty IPO

Birkenstock is already beginning to buckle, just like its signature look. [Bloomberg]( This is Bloomberg Opinion Today, a cult-like following of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - Who let the dogs out? [Birkenstock’s IPO](. - Who lost the war of images? We [already know](. - Taylor Swift saves the NFL? [Actually, no](. - News on Facebook? It’s [super slow](. BIRKs On Sale Is it just me, or does it feel like [this]( is the 179th Prime Day of this year?? Like, didn’t we [just have]( one of these? How many air fryers does a girl really need? Seems like overkill. Anyway, Birkenstocks are [on sale]( on Amazon today, which is funny, considering the stock went on sale this morning, too. Last night, the 249-year-old German footwear brand priced its New York [IPO]( at $46 a share — a valuation that Andrea Felsted [says]( “looks as pricey as its Dior collaboration [clog](.” And its [close]( at 13% below that price is evidence of that. Bloomberg News is calling its opening drop “one of worst ever for $1 billion-plus US IPOs.” Even so, I am living for these photos at the New York Stock Exchange. They brought props!! And the [bearded]( (natch) CEO looks so proud. It’s all rather adorable. The NYSE has never seen so many Jesus sandals. Photographer: ANGELA WEISS/AFP Plus, I’m happy that [a lot of traders]( took inspiration from [Timothée Chalamet]( and opted to wear socks underneath their Birks. Nobody wants to see dogs on the stock exchange floor! Although [this one guy]( clearly didn’t get the memo. Don’t worry, I censored them for you: Have you no sense of decency?? Photographer: ANGELA WEISS/AFP So how did the Boston clog company make it to Wall Street? Its secret lies partly in its ability to maintain a cult-like following. The average Birkenstock owner in the US has 3.6 pairs. The other half of its growth story stems from [a long history]( dating back to 1774, when the company was founded. It didn’t make a name for itself until 1896, when it developed the “orthopedic chic” cork footbed that we know and love today. And even then, it wasn’t until the 1990s that the shoes really took off, largely thanks to this Kate Moss photoshoot in [The Face magazine](: Source: The Face Up until 2012, it was a family business, run by the three sons of Carl Birkenstock. But the Birkenstock brothers weren’t exactly seeing eye-to-eye on the direction of the company, so they brought in professional help to shepherd the shoemaker. The decision to hire a CEO clearly paid off: In the past decade, the shoes have become a wardrobe staple for all walks of life (young and old and [plastic]( alike!) and revenue is up by over 20% in the first nine months of this year alone. But is the company really worth upward of $8.6 billion? Andrea has her doubts, writing that its projected enterprise value is well ahead of Dr. Martens and Crocs, and closer to the ratings of Nike and Lululemon. “That looks a stretch, and assumes that Birkenstock continues with its growth trajectory,” she writes. None of those brands is immune from the fashion cycle, including Birks. [Wörishofer](, for instance, could easily dethrone the footwear company next year as the new [It-Girl shoe](. For those snatching up the Amazon Prime Day deal, faith in the Jesus sandal is as strong as ever. But for others, the debut flop might be a sign that the shoe brand is already beginning to buckle, just like its signature look. Bonus Fashun Reading: If LVMH is struggling [this much](, then you know the luxury slowdown is bad. — Andrea Felsted The War of Images I saw this post from the Atlantic’s Charlie Warzel yesterday on Threads and I can’t get it out of my head: If you’ve spent even a minute [on social media]( this past week, chances are you know what he’s talking about. Everyone from [celebrities]( to [influencers]( to [law school student senates]( to your college roommate has taken it upon themselves to post paragraphs (often in minuscule font) about the attack in Israel. Some of the posts feel [sanitized]( and performative, as if they’ve been run through a PR washing machine. But a lot of them are genuine, earnest displays of support for Jewish people — a welcome message to see after the awful cascade of violence in Israel. At this point, we’ve seen the videos, the photos and the firsthand accounts of the brutality in Gaza and beyond. Perhaps our need to release these statements has to do with the images themselves, which are incredibly upsetting and difficult to comprehend. “Within hours of the attack, Hamas was posting videos to show off its stunning ‘success.’ As with the kinetic operations, it was keen to draw first blood in the war of images, to inspire its supporters and demoralize its enemy,” Bobby Ghosh [writes](. Hamas attempted its own PR, but instead of drawing praise, its bloody images of unconscious victims had the opposite effect. The videos of their captors “drew widespread [revulsion and reprobation](, and if anything, [strengthened Israeli resolve]( to exact retribution,” he says. And “rather than demonstrate patriotic resistance by brave Palestinian fighters, the images invited comparisons with the brutal terrorists of the Islamic State.” Sympathy is now firmly with Israel, and the “human shield” of Palestinians that Hamas has used to its advantage is likely to bear the brunt of Israel’s vengeance. Meanwhile, those Palestinian families have spent the last 16 years trapped in a tiny coastal enclave by a land, sea and air blockade, enforced by Israel and Egypt, Ruth Pollard [writes](. “There are at least two million people in Gaza — most of them civilians — yet the West risks seeing only Hamas. Israel must of course defend its citizens and borders. But as depraved and savage as Hamas’ attacks have been, the response must not be to further devastate innocent Palestinians. One set of war crimes does not justify committing another against an already long-suffering people,” she argues. Hamas’ assault on Israel is now imprinted in our brains — and our browser histories — and we’re never going to be able to erase it. The last thing the world needs is more images of bloodshed. Read [the whole thing](. She Put Him on [the Map]( If Gen Z had it their way, the NFL would stand for Not For Long, because their appetite for sports is, uh, [lacking](: Still, some think the patron saint of [pop music](, Ms. Taylor Alison Swift, is destined to save Roger Goodell’s crusty football empire. Her latest [relationship](, with Travis Kelce of the Kansas City Chiefs, AKA “the greatest tight end of ALL TIME” — in the eyes of [every]( [man]( in the universe, at least — has drawn the attention of football fans and critics alike. Before Traylor (or Tayvis or Swelce), non-sports watchers had [no idea]( who this [Travis dude]( was. To them, football was an annual occasion to eat nachos and watch Rihanna or Lady Gaga or Jennifer Lopez sing their hearts out at the Super Bowl Halftime Show. Now, Taylor’s fans have suddenly taken [interest]( in the sport. The girlies are snatching up #87 [jerseys]( in droves. They’re live-TikTok-ing his [games](. They’re buying [tickets]( to see the Jets, of all teams. This past weekend, Adam Minter [witnessed]( the fanatics firsthand, having sat in US Bank Stadium in Minneapolis to watch the Chiefs [play the Minnesota Vikings](. “Behind me, a couple wondered whether Taylor Swift, who had attended the last two Kansas City games, had decided to attend this one, too. In front of me, I could see a couple leaning over a phone, looking at search results for Taylor Swift Minneapolis,” he writes. Sadly, she [didn't show up]( (god forbid Taylor doesn’t want to [hang out]( with her boyfriend’s mom every Sunday!). “Her presence and undefined relationship with Kansas City Chiefs tight end Travis Kelce surely sold a few extra Chiefs jerseys over the last several weeks. But if the NFL and other leagues are interested in the long-term growth of their fanbase and its connection to the community, they’ll need to do more than rely upon celebrity pop-ups,” he argues. Although I still firmly [ship]( it, a new [breakup]( [song]( would be a nice consolation prize. Telltale Charts Hahaha I sure chose [a convenient time]( to stop working as a social media editor, didn’t I? In January, I [started]( writing this newsletter full-time, which, in hindsight looks like a pretty wise move. Meta’s “relationship with the news business has slowly unraveled over the past few years. Beginning with the fallout from the election of Donald Trump as president, promoting the news became more trouble for Facebook than it was worth —though it’s only now that it dares say it out loud,” Dave Lee writes. Now, Facebook traffic to news sites has all but disappeared after the social network stopped giving publishers [support](. While it marks the end of an era in which media brands catered to the whims of algorithms and app updates, it also could lead to a less-informed citizenry overall. “When people say the important news will always find them, it’s likely social media doing that work,” he writes. But [newsletters]( can do that, too. You, dearest reader, are proof of that! Mark Gongloff has an incredible [zinger]( in his column today: “If you hired a financial adviser and the first nugget of wisdom for you was ‘[Stop being poor](,’ then you would probably fire that adviser. Oh, and meanwhile, the adviser’s family owes you a fortune. That’s a bit how developing nations should feel about the IMF at the moment.” You see, the International Monetary Fund published [a paper]( that essentially says the poors of the world should fight climate change and avoid debt all at once. Mark says the advice ignores a multitude of “real-world complications.” Instead, we should direct our ire toward wealthy nations, which have consistently [failed]( to deliver climate aid to developing countries. “Advanced economies and China — which continues to declare itself a developing nation and therefore exempt from developed-nation responsibilities — can help by [forgiving]( or restructuring” the debts of the world’s poorest countries, he writes, freeing them to invest in environmental solutions that will ensure the longevity of their people and the planet. Further Reading Don’t worry EU, the UK still dominates the [derivatives business](. — Bloomberg’s editorial board Exxon’s $64.5 billion [deal]( to buy [Pioneer]( shouldn’t ring [antitrust alarm bells](. — Liam Denning The SEC’s probe into Wall Street’s [WhatsApp messages]( may ruin its moral authority. — Aaron Brown The UK’s dream to re-create Japan’s [high-speed rail]( is all but dead. — Gearoid Reidy Europe needs a new strategy to stop Indonesia and Malaysia from burning forests for [palm oil](. — David Fickling US-China trade records are proof that [globalization]( is still going strong. — Daniel Moss Have a housing headache? It’s easy to get mixed up over [mortgage risks](. — Paul J. Davies ICYMI The GOP [nominated]( Steve Scalise for House speaker. Bing’s AI image generator has [new guardrails](. Teens are developing [online gambling]( addictions. Air-traffic control [lapses]( nearly killed 131 people. Mary Lou Retton is [fighting]( for her life in the ICU. Kickers The next big [solar storm]( could fry the grid. A [bird’s eye view]( can be very colorful. (h/t Scott Duke Kominers) The early bird [reservation]( is all the rage. Meet the [TikTok trend]( of your nightmares. Florida swans connected to Queen Elizabeth II get their [annual physical](. Credit: AP/Laura Bargfeld Notes: Please send royal swans and feedback to Jessica Karl at jkarl9@bloomberg.net. [Sign up here]( and follow us on [Threads](, [TikTok](, [Twitter](, [Instagram]( and [Facebook](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Opinion Today newsletter. 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