2024-04-18 18:36:02 ET
Summary
- Match Group, the largest player in the online dating market, has experienced a significant decline in paying users, particularly at Tinder.
- The market is pricing in a prolonged period of payer erosion at Tinder, creating a potentially positively asymmetric return profile.
- However, we have concerns about the saturation of the online dating space and competition from new entrant Bumble, as well as ongoing user dissatisfaction and falling popularity with younger cohorts.
Summary
Match Group, Inc. ( MTCH ) is the largest player in the online dating market, owning a portfolio of 14 of the most popular and well-known brands, including the marquee product, Tinder. Following a strong rebound coming out of COVID-19, paying user growth has slowed dramatically, and turned negative at Tinder. This, along with the significant increase in interest rates, has driven a massive negative re-rating of the company's stock. Match's massive selloff and dominant market position caught our attention, and we wanted to take a closer look....
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Match Group: We're Swiping Left For Now