Forget Facebook, Match Group Is a Better Online Dating Stock

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The online dating giant still has room to run after generating multibagger returns for early investors. Match Group (NASDAQ:MTCH) has been a robust growth stock since its IPO in Its premium tier, Tinder Gold, is a $5 upgrade for Plus members which curates Leo Sun owns shares of Facebook.

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Earlier this year, Facebook upgraded the feature with video calls to let users go on “virtual” dates as the COVID crisis kept more people at home. Let’s see why investors should still consider Match a better online dating stock than Facebook, and why Match’s stock could still have more room to run. Match established a first mover’s advantage in online dating apps over the past decade. Tinder, which was launched eight years ago, streamlined the entire process with swipes and became the highest-grossing app in the world last year, according to App Annie’s annual “State of Mobile” report.

Unlike Facebook, which generates most of its revenue from ads, Match generates most of its revenue from paid subscriptions — which are stickier and more reliable than ad revenue. Match upgraded Tinder with the Plus tier in and Gold tier in Match’s total subscribers, including Match. If we track Tinder’s growth in subscribers and direct revenue over the past year, we see its growth is decelerating:. It’s tempting to believe Tinder’s high-growth days are over and newcomers like Facebook are catching up.

However, instead of competitive headwinds, Match attributed the deceleration to Tinder’s global exposure to the COVID pandemic, which curbed signups and spending in high-growth markets like India and Brazil. During last quarter’s conference call , CEO Shar Dubey declared Tinder’s business had “bottomed out” in April, and that the app “should definitely start accelerating growth again” by the fourth quarter of Match has also started testing a third paid tier for Tinder, called Platinum, which Dubey claims will “provide additional value beyond Gold by increasing users’ chances to get more matches and more conversations.

In addition, Match has been expanding Tinder’s video ecosystem with Swipe Night social videos, video profiles, and one-on-one chats.

Where next, Messi ? Few clubs can meet his financial demands

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Match impressed investors with its first-mover advantage in the online dating market, its diverse portfolio of market-leading apps, and its steady stream of high-margin subscription revenue. That resilience is impressive, but can Match withstand the incoming macro headwinds and deliver millionaire-making returns? Match generates most of its revenue from paid subscriptions for its apps, and just a sliver comes from online ads. Its biggest app is Tinder, which popularized the mechanic of swiping left and right on potential matches.

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However, the play on the final day of the match has been delayed due to rain and it looks like the players will have to wait for quite some time for the game to resume. England are leading the series and are looking to secure a first win at home against Pakistan since England then managed to squeeze in about 11 overs. Shan Masood was the first to go, falling to James Anderson yet again after making just 4. Masood’s opening partner Abid Ali was then caught in the slips in Anderson’s very next over after which captain Azhar Ali and Babar Azam stuck around nervously for some time.

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