Online Dating Stock Plunges To A Year Low
Online dating shares see double-digit declines as technology stocks rally
Majority of analysts continue to hold bullish views on shares
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Match and Bumble’s 80% Stock Plunges as shares see double-digit declines while technology stocks rally
via Bloomberg#match #bumble #socailmedia #tech #stocks pic.twitter.com/L5yxKfj3s0— The_Journalbiz (@the_journalbiz) November 17, 2023
Bloomberg Chart
Online dating stocks have mostly been ghosted by this year’s scorching technology rally. Many on Wall Street continue to keep the faith.
Match Group Inc., which owns popular apps including Tinder and Hinge, and Bumble Inc. have seen double-digit declines in 2023 and have shed more than 80% of their value from 2021 peaks.
Slowing growth, intensifying competition, and struggles in retaining paid users are among the challenges the industry faces.
Still, the majority of analysts hold bullish views and JPMorgan Chase & Co.’s Cory Carpenter is among those who are undeterred. Carpenter believes that Match’s growth is poised to re-accelerate as marketing and new features help bring new customers to online dating, used by roughly half of single people in North America.
“We think that 50% goes higher, but to get it to go higher you need a new product, you’ve got to give people a reason to join,” said Carpenter, who has overweight ratings on both Match and Bumble. “We’re confident that they’re on the right path.”
For most of Match and Bumble’s slide from their respective peaks, neither has had a sell rating, according to data compiled by Bloomberg. Both stocks have recently hit record-low valuations, and trade at about 2.4 times estimated sales.
In comparison, the Nasdaq 100 trades at about 4 times, according to data compiled by Bloomberg.
