Swipe Right And Discover 3 Dating App Stocks On This Valentine’s Day

How did you guys meet? Oh, we met on Bumble. 

With a large part of our social lives now going fully digital, so has the experience of meeting new people and dating. Dating apps make it easy, quick, and convenient to connect with others and meet someone new. Also, thanks (or no thanks) to the Covid-19 pandemic, restrictions on socialising meant more time spent at home, leading to a surge in the usage of these apps as a way to connect with others remotely ^[1]. 

This surge in popularity has led to the growth of the dating app market, valued at $9.65 billion in 2022 and projected to grow at a CAGR of 7.4% from 2023 to 2030, making it an attractive opportunity for traders and investors alike ^[2]. 

Let’s take a look at 3 dating apps stocks traders can consider swiping right on this Valentine’s Day.

3 Listed Dating App Stocks In The Market

Match Group (NASDAQ: MTCH)

Match Group is a leading online dating company that operates a portfolio of popular dating brands, including Match.com, Tinder, Hinge, OkCupid, PlentyOfFish and others. The company’s portfolio of dating apps serves a wide range of audiences, from young adults looking for casual relationships, to mature singles seeking meaningful connections.

The company was founded in 2009 and is headquartered in Dallas, Texas. It went public in 2015 and has since become one of the largest players in the online dating market, with a market capitalisation of $14.35 billion as of the year 2022 ^[3]. The company reported a total revenue growth of 7% to $3.2 billion in 2022 in their Q4 earnings report ^[4].

Tinder, Match Group’s flagship dating app, is a location-based dating app that allows users to quickly browse through profile pictures, swiping right to indicate interest and left to pass. If two users both swipe right, they are matched and can start messaging each other.

OkCupid, another one of the company’s flagship apps, uses a unique algorithm to match users based on their responses to a comprehensive questionnaire. While the app also allows users to browse profiles and message each other, its focus on compatibility and in-depth profiles sets it apart from other dating apps.

Here’s a look at the Match Group’s market movement over the last year, which has been on a downtrend.

Figure 1: Match Group price chart over the last year. Image obtained from Trading View.

Bumble (NASDAQ: BMBL)

Bumble is a popular dating app that was founded in 2014 and is headquartered in Austin, Texas. It differentiates itself from other dating apps by empowering women to make the first move in forming connections. The app allows women to initiate conversations with their matches, promoting a more respectful and equal approach to online dating. Bumble also offers additional features, such as Bumble BFF for friendship matching, and Bumble Bizz for professional networking. 

In 2022, Bumble went public and debuted on the stock market, with shares trading on the NASDAQ under the ticker symbol “BMBL”. The company’s initial public offering (IPO) was well-received by investors, and the stock performed strongly in the year’s trading ^[5]. The company has a market capitalisation of $3.88 billion as of the year 2022 ^[6].

The app’s unique approach to online dating has resonated with users who appreciate its focus on safety, equality, and empowerment. Bumble’s user-friendly interface, engaging features, and innovative approach have helped it to attract a growing user base and establish itself as a leader in the online dating market.

Here’s a look at the Bumble chart over the last year, which has been trending sideways after reaching a high of USD$38.99 on 29 July 2022.

Figure 2: Bumble price chart over the last year. Image obtained from Trading View.

Hello Group Inc (NASDAQ: MOMO)

Hello Group Inc is a technology company specialising in online dating and social networking, primarily in the Asian market. The company was formerly known as Momo Inc and changed its name to Hello Group in August 2021. Hello Group Inc has a market capitalisation of $1.77 billion as of 2022 ^[7].

The company offers two main dating apps, TanTan and Momo that aim to provide a platform for people to connect with others in their local area for dating, friendship, or networking. To generate revenue, the company offers premium features in both apps that can be purchased through in-app purchases. 

TanTan is a location-based dating app that allows users to connect with people nearby who have similar interests. The app uses a swiping feature to help users find potential matches and allows users to chat and exchange photos within the app. The app also offers a VIP Membership subscription that allows users to enjoy a better swiping and matching experience. Through the subscription, users will gain additional perks such as unlimited swipes and exclusive badge to help the user stand out from the rest.

Here’s a look at the Hello Group chart over the last year, which jumped in December 2022 largely due to its reported strong third quarter earnings report that instilled confidence in traders ^[8].

Figure 3: Hello Group price chart over the last year. Image obtained from Trading View.

Why Trade Dating App Stocks

To swipe, or not to swipe? 

There are several reasons why dating app stocks may be a good trading opportunity. 

1. The dating app market growth potential

The demand for dating apps has been growing with unprecedented popularity as dating has never been made more convenient. As a result, the market has seen strong investor confidence in this industry. For example, Match’s initial public offering in November 2015 kicked off with a price of USD$12 per share and rose to USD$172.13 on 11 February 2021 ^[9].

2. Growing acceptance of online dating

Online dating has come a long way from being perceived with negative stereotypes, such as being associated with individuals who were seen as desperate or lacking the ability to form meaningful relationships outside of the virtual world. With the growing acceptance of online dating, these misconceptions have gradually dissipated, and is even encouraged in the modern dating world ^[10], with more individuals recognising the opportunities provided by dating apps.

3. Wide range of monetisation options

Dating app companies have a diverse range of revenue generation methods, including subscription-based models, in-app purchases, and advertising. For instance, when the economy takes a turn for the worst and the business is unable to sustain from just one revenue stream. The multiple streams of incomes could help mitigate the risk of reliance on a single revenue source and provides stability against any market fluctuations ^[11].

Will you swipe right this Valentines’ Day?

The days around Valentines’ Day often brings about a desire for connection and companionship, and dating apps offer a convenient way for individuals to find love and romance. 

With their growing popularity and widespread acceptance, dating apps could be the companies on your watchlist. Open a live trading account in less than five minutes with Vantage and start trading with $0 commission on all the US stock CFDs. 

References