Finances

One of Germany’s most prominent banks, DekaBank Deutsche Girozentrale, has reduced its shares of Match Group by 4.7 percent.

According to BestStocks.com, DekaBank now owns 178,837 shares which amounts to about $7.2 million, compared to the previous quarter in 2022 where it held 187,697 shares worth $11 million.

Match Group’s stock price fell 10.45 percent between March and April according to Investing.com, and has fallen 54.78 percent overall in the last year. In addition, a Goldman Sachs analyst has now adjusted its price target for Match Group stock, lowering it to $58, down from $65 earlier in the year. It still suggests the company’s stock is a buy, according to Market Screener.

Match Group is listed as a “moderate buy” among analysts according to Bloomberg.com, but several shareholders have now filed class-action lawsuits against the company for not being forthcoming about the problems with Tinder’s product rollouts. Tinder brings in the lion’s share of revenue for the company, and for the first time, the app saw a decline in Q4 2022.

New users are downloading and registering for dating apps every day, and business is booming for the $5.61 billion-dollar industry, despite a recent decline in subscriptions for Tinder.

According to new research gathered from website Cloudwards, 1 in 5 U.S. Internet users are also using a dating app. In fact, the total number of dating app users grew to 366 million worldwide in 2022 alone, up from 240.9 million in 2016 and 323.9 million in 2021.

Gen Z daters seem to have a stronger preference for Tinder, which is the most popular dating app in the U.S. Tinder has a reputation that it’s mainly for singles who aren’t looking for anything serious, and Gen Z daters are on these apps to look for friendships and casual relationships as much as a partner. However, in recent months, Tinder’s new CEO Bernard Kim seems to be taking the app in a new direction and focusing on attracting more serious daters, including testing a new $500 VIP service called Tinder Vault.

Tinder has announced two significant new features it is rolling out, including highlighting relationship types (including non-monogamy) and allowing members to display their pronouns on their profiles.

With the new update, Tinder users will be able to choose from a variety of terms to describe their relationship type, and it will display prominently on their profile just under their name and age. They can choose from descriptions like “monogamy,” “ethical non-monogamy,” “open relationship” or “open to exploring,” for example.

According to the press release, Tinder is making this shift to put relationship types more front and center, since it found that 41 percent of Gen Z users are open to non-traditional and non-monogamous relationships. This feature complements the Relationship Goals feature the company rolled out last year, which gave users the ability to specify if they are searching for “Long-term,” “short term” or long-term, open to short-term” among other types, like “just figuring out my dating goals.”

India is now among the fastest-growing dating app markets worldwide, thanks to a growing young population of singles and their changing attitudes towards dating.

In terms of year-over-year growth, India emerged as the fifth largest market in dating app spending in 2022, according to a new study by data.ai Intelligence. Researchers found that Indian users spent $31 million more in 2022 than they did in 2021 despite economic factors like inflation that affect consumer spending.

Match Group, Bumble, and other major dating app companies have made a big investment in India, hoping to capitalize on this attractive market which now brings in millions of dollars in revenue each year to dating app companies.

A group of class action lawsuits have been filed in the U. S. District Court on behalf of investors who purchased shares of Match Group stock between November 3, 2021 and January 31, 2023. The lawsuits allege that the company misled investors as to financial expectations and new product executions that Match Group was claiming to initiate.

According to law firm Bernstein Liebhard LLP, a lawsuit was filed in the U.S. District Court for the district of Delaware and alleges “violations of the Securities Exchange Act of 1934.”

According to the press release from Kaskela Law, LLC, throughout the dates named in the lawsuit, Match Group and its executive officers “falsely represented to investors” that Tinder was moving forward with critical product initiatives to drive growth for the company in 2022 and going forward. In addition to this, other lawsuits have been filed on behalf of investors with Kessler Topaz Meltzer & Check, and Bernstein Liebhard LLP, among others.

Dating app Grindr closes out 2022 on a high note, reporting a 34 percent increase in year-over-year earnings to $195 million, showing a positive outlook for the coming year to investors since the app went public.

According to Fast Company, monthly average users rose to about 12 million, up from 11 million at the same time last year. Paying users also grew from 703,000 to 873,000 over the last year.

This was the company’s first earnings report as a public company, and with the impressive numbers, shares more than doubled throughout the trading day, according to Fast Company. The article was quick to point out that the dating app industry in general is still volatile despite earnings, as shown by Bumble’s fluctuating share price and secondary stock offering, as well as the recent Match Group dip. Since Grindr’s report came out, the company’s stock has gone down.