In this article, we will be taking a look at some of the best dating stocks to buy. To read our detailed analysis of dating stocks and this sector, you can go directly to see the first part of our article Are Dating Apps a Good Investment?
2. Bumble Inc. (NASDAQ:BMBL)
Number of Hedge Fund Holders: 22
Bumble Inc. (NASDAQ:BMBL) is a provider of an online dating and social networking platform in North America, Europe, and internationally. The company is based in Austin, Texas.
An Outperform rating was reiterated on Bumble Inc. (NASDAQ:BMBL) shares on November 10, by analyst Shweta Khajuria at Evercore ISI. The analyst also placed a $25 price target on the stock.
Bumble Inc.’s (NASDAQ:BMBL) revenue for the third quarter came in at $232.64 million, representing a growth of 17% year-over-year. The company also generated $34 million in free cash flow, while maintaining cash and cash equivalents of $365 million. Its latest quarter demonstrated healthy financial performance and long-term growth prospects.
Our hedge fund data shows 22 funds long in the third quarter, with a total stake value of $132 million.
Polen Capital, an investment management company, mentioned Bumble Inc. (NASDAQ:BMBL) in its third-quarter 2022 investor letter. Here’s what the firm said:
“The activity this quarter included two new initiations along with modest adds and trims to existing positions. During this period, we initiated new positions in Euronet Worldwide and Bumble Inc. (NASDAQ:BMBL).
Bumble is an online dating platform with top-ranking apps including Bumble, Badoo, and Fruitz. We are excited about the market potential for online dating, which has been growing in popularity but is still underpenetrated in many markets. It’s still early days for Bumble to benefit from the category growth and expand internationally. Bumble is competitively advantaged because the company empowers women to make the first move, driving a strong brand and compelling customer unit economics. Longer term, we are excited about the opportunity for Bumble to take a share in dating and leverage its brand in other categories.”
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1. Match Group, Inc. (NASDAQ:MTCH)
Number of Hedge Fund Holders: 54
Match Group, Inc. (NASDAQ:MTCH) is a communication services company based in Dallas, Texas. Its brands include dating apps such as Tinder, Match, Meetic, OkCupid, and Hinge.
On November 3, John Blackledge, an analyst at Cowen, reiterated an Outperform rating on Match Group, Inc. (NASDAQ:MTCH), while placing an $80 price target on the stock.
Currently, Match Group, Inc. (NASDAQ:MTCH) has the largest portfolio of dating apps, and it held over 60% of the North American online dating market as of this October. About 28% of the company’s revenues are generated as free cash flow. Consensus estimates called for 22% earnings growth from the company, and 13% revenue growth over the next three years. These figures are much higher than the average in the industry.
In the third quarter, 54 hedge funds were long Match Group, Inc. (NASDAQ:MTCH), with a total stake value of $621 million.
Artisan Partners, an investment management company, mentioned Match Group, Inc. (NASDAQ:MTCH) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Match Group, Inc. (NASDAQ:MTCH) is the global leader in online dating services across a portfolio of 45 brands including Tinder, Match.com, OkCupid and Hinge. Despite excellent growth momentum at Hinge, the company overall has experienced macro headwinds (inflation impacting lowend consumers, foreign exchange pressures) and product execution issues at Tinder (>50% of revenue). Tinder’s product innovation roadmap has not delivered as expected in 2022, falling short on efforts to drive higher user adoption of premium features. Fortunately, a new CEO took over in May, and his focus is on turning around Tinder by upgrading leadership and strengthening product development efforts. While we are disappointed in the loss of profit cycle momentum, Match remains the leading franchise in online dating and generates significant cash flow. Given its depressed valuation, we are taking time with this mid-sized position to evaluate the turnaround plan at Tinder.”
Follow Match Group Holdings Ii (Old) (NASDAQ:MTCH)
Follow Match Group Holdings Ii (Old) (NASDAQ:MTCH)
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