Match Group Shares Soar Twenty Percent in June

Match Group’s stock rose 21.3 percent during the month of June thanks to analysts’ more positive expectations of a turnaround at Tinder, and CEO Bernard Kim’s large insider buy of the company’s shares.

According to Motley Fool, there is new confidence among analysts in the dating company’s stock, which had been falling in part due to struggles with its flagship dating app Tinder, which led to the company falling short of revenue expectations in the first quarter of 2023.

To respond to concerns of falling subscriptions, the company has been promoting new premium in-app features. It has also invested in a huge marketing campaign for Tinder aimed at Gen Z, its fastest-growing audience. The effort seems to be working, since Gen Z is its fastest-growing audience.

CEO Bernard Kim also purchased $1.08 million worth of Match Group stock on May 31st, signaling his confidence in the direction of the company. It also tripled his shareholdings in the stock according to Motley Fool, which means that analysts and investors had confidence in his plans for the company, too. In addition, Match Group launched a $1 billion share repurchase program, adding to that confidence.

One research analyst group made Match Group a new “long call” with estimated 40 percent upside, and another analyst noted Kim’s plan will lead to a revenue acceleration in the second half of this year (especially compared to the less-than-stellar performance comparison of the same time period last year).

Some other factors that grabbed analysts’ attention were the growth of Hinge at a rate of 27 percent last quarter and continues to perform well. Earlier this year, Hinge launched a premium VIP subscription for $50 per month for so-called “motivated daters.”

Match Group also plans to launch a new dating app later this summer, and though not many details are known, the early buzz bodes well for the company in attracting new users to its platforms.

The company’s shares are still priced at 77 percent less than its all-time highs in 2021, when dating apps were dominating the app market in part due to Covid restrictions, since people were not meeting much in person. Analysts consider this low price point another reason that investors should buy.

According to Motley Fool, “Wall Street analysts see nearly 60% earnings growth this year and another 22% EPS growth next year, putting Match's forward P/E at 21 and its 2024 P/E at just 17.4.”