MTCH - Why Is the Meet Group So Cheap?
The Meet Group (NASDAQ: MEET) owns numerous social and dating applications, including MeetMe, LOVOO, Skout, and Tagged. The company has invested heavily to develop a live-streaming video platform, allowing the company to pivot in recent years from social media that generates advertising revenue to a video-centric offering that generates revenue from in-app user purchases. The company's properties have eclipsed 5 million daily active users (DAU), with over 800,000 video daily active users.
The stock has experienced substantial price swings over the years and still has a 1.58 beta that indicates above average volatility. Meet Group shares have reached two significant peaks — surpassing $10 in 2006 and climbing above $14 in 2011, but it has settled to the $5 range as of late 2019. Volatility is common among smaller tech stocks, especially those with relatively high growth rates, but volatility is often augmented by lofty valuations that can stoke exuberance and fear among investors.
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