3. Bumble Inc. (NASDAQ:BMBL)
Number of Hedge Fund Holders: 26
Share Price as of October 18, 2024: $7.14
Forward P/E as of October 18, 2024: 7.03
Bumble Inc. (NASDAQ:BMBL) is one of the most affordable stocks under $10 to buy. Bumble Inc. is a social network company behind the popular dating application, Bumble. The platform steps away from traditional dating experiences allowing women to take the first move and feel empowered in doing so.
Users can not only find dates, but they can also find new friends on Bumble for Friends and make career moves on Bumble Bizz. In the second quarter of 2024, the company logged revenue worth $269 million, up by 3%. The Bumble App revenue increased by 5% to reach $218 million. In addition to that, paid users for the Bumble App increased by 15% to reach 2.8 million, and grew by 87,000 quarter-over-quarter. Total paying users for Bumble Inc., on the other hand, reached 4.1 million, compared to 3.6 million in Q2 2023.
Expansion and growth were major goals of the company this year. In May, Bumble Inc. (NASDAQ:BMBL) signed an agreement to acquire a group and community application, Geneva, that connects people based on shared interests. The acquisition is expected to close in the third quarter of 2024 and will boost Bumble’s position on connecting people, especially friends and communities.
Overall, Bumble Inc. (NASDAQ:BMBL) is a cheap stock that has a consistent financial performance and a growing user base. The company’s strategic moves align well with its brand image and the value it aims to bring to customers, contributing to its ranking on our list. According to the Insider Monkey database, 26 hedge funds were bullish on the stock at the close of Q2 2024.
Polen Capital’s Polen Global SMID Company Growth Strategy stated the following regarding Bumble Inc. (NASDAQ:BMBL) in its Q2 2024 investor letter:
“We exited our position in Bumble Inc. (NASDAQ:BMBL), a global leader in the mobile dating app space, due to several Flywheel violations. We initially entered this position roughly two years ago due to the founder-led management team, the robust brand of their key Bumble asset, the opportunity to expand Bumble globally, and the attractive margin and free cash flow profile. Over the last year, the founder has taken a step back from the business into an Executive Chairman role; the COO left to become CEO of another tech start-up, and a new CEO has made several material changes to the general management structure and will be introducing significant changes to the company’s core products. According to management and third-party data, the “swipe” dating apps are struggling to grow downloads in key markets and need a product refresh to reinvigorate growth, perhaps leveraging new Al technologies to enhance user experience and matching capabilities. Together, the new management team and the app “refresh” introduce a level of execution and reinvestment risk that violates our Flywheel. The company remains a leader in the dating space and highly profitable, but we believe it prudent to watch how this business evolves from the sidelines.”
