1. Match Group, Inc. (NASDAQ:MTCH)
Forward P/E: 11.98
Analysts’ Upside Potential: 18.77%
Number of Hedge Fund Holders: 43
Match Group (NASDAQ:MTCH) provides digital technologies through its elaborate portfolio of brands, including Tinder, Hinge, Match, OkCupid, Meetic, Pairs, Azar, Plenty Of Fish, Hakuna, and others. The Match platform falls in the online dating category, allowing users to search profiles and receive algorithmic recommendations. It also offers a one-to-one real-time video feature.
Meetic and Pairs are online dating brands in France and Japan, respectively, with Pairs also holding a presence in South Korea and Taiwan. The Hakuna application offers live streaming services in Japan and Korea, while Plenty of Fish is an interactive, social app where users can experience one-to-many live streaming. In addition, Azar is a one-to-one video chat service that allows users to interact and meet people from across the globe in their native language. Azar is powered by real-time language translations.
Match Group’s (NASDAQ:MTCH) key elements are working in its favor. Tinder is stabilizing, Hinge is experiencing rapid expansion, and Azar is also performing strongly. Similarly, Pairs is driving user strength across its operations. User and payer trends are thus stabilizing in the company and are expected to continue on a positive trajectory. The company expects strong sequential payer growth in Q3 3034, with improved year-over-year monthly active user trends in the second half of the year.
Match Group (NASDAQ:MTCH) is undertaking several initiatives to continue growth. Tinder is integrating artificial intelligence to simplify and enhance the dating experience through a fresh and innovative approach. It is employing AI-driven tools such as Photo Selector, cleaning its ecosystem, and testing enhanced tools to improve the platform’s authenticity and effectiveness.
New marketing campaigns by Hinge are also driving new user growth, and Azar is experiencing strong financial momentum due to successful expansion into Europe and cutting-edge product innovation. Match Group (NASDAQ:MTCH) is expected to become the owner of the leading dating apps in the world in the coming quarters, reflecting its strong operational model.
While we acknowledge the potential of MTCH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MTCH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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