Dallas, Texas-based Match Group, Inc. (MTCH) is a leading player in the online dating industry, with a market cap of $10 billion, and operates a diverse portfolio of over 45 brands. The company focuses on enhancing user connections through innovative dating products available in more than 40 languages globally.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Match Group fits this criterion perfectly. Match Group is renowned for its extensive portfolio of dating brands that cater to diverse demographics, facilitating meaningful connections through innovative features while prioritizing user privacy and data security.
Despite experiencing a 10.9% decline from its 52-week high of $42.42 reached in September last year, the Tinder parent company has shown resilience, with its shares gaining 24.2% over the past three months. This performance significantly outpaces the Communication Services Select Sector SPDR ETF Fund (XLC), which rose 4.1% during the same period.
However, in the longer term, MTCH's shares have risen 3.6% on a YTD basis, lagging behind XLC's 23.9% surge. Over the past 52 weeks, Match Group has dipped 5.4%, contrasting with XLC's 38% return over the same period.
But, since July, MTCH has traded mostly above both its 50-day and 200-day moving averages, suggesting a bullish price trend.
Shares of Match Group surged 13.2% following its Q2 earnings release on Jul. 30 as the company reported stronger-than-expected revenue of $864.1 million. Additionally, the decline in paying users for Tinder was less severe than anticipated, indicating signs of stabilization in user engagement. Furthermore, the announcement of plans to cut 6% of its workforce and discontinue live-streaming services was seen as a strategic move to streamline operations in response to pressure from activist investors.
Nevertheless, in comparison, rival IAC Inc. (IAC) has outperformed MTCH, gaining 4.4% on a YTD basis and 9.8% over the past 52 weeks.
Despite MTCH's underperformance over the past year, analysts are moderately optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 25 analysts covering it, and it is currently trading below the mean price target of $43.30.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
