Dallas, Texas-based Match Group, Inc. (MTCH) is a global leader in the online dating industry. With a market cap of $8.3 billion, the company owns and operates a wide range of popular dating platforms such as Tinder, Match, and OkCupid, offering services across various demographics and interests.
Companies worth $2 billion or more are generally described as “mid-cap stocks,” and MTCH fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the internet content & information industry. MTCH's wide range of brands enables it to appeal to a variety of demographics and cater to different preferences, expanding its market reach. The company's strong brand presence, strategic acquisitions, and focus on innovative technologies such as AI-driven matching algorithms and safety measures distinguish it from competitors in the industry.
Despite its notable strength, MTCH shares slipped 19% from its 52-week high of $38.84 achieved on Jul. 31, 2024. Over the past three months, MTCH stock dipped 3.5%, outperforming the Nasdaq Composite’s ($NASX) 8.7% loss during the same time frame.
In the longer term, shares of MTCH fell 16% over the past six months and dipped 10.7% over the past 52 weeks, underperforming NASX’s six-month losses of 1.8% and 8.4% returns over the last year.
To confirm the bearish trend, MTCH has been trading below its 200-day moving average since early November, 2024, with some fluctuations. The stock is trading below its 50-day moving average since late February, with slight fluctuations.
MTCH’s underperformance stems from rising competition in the online dating market, along with a challenging economic environment influencing consumer spending. It is also facing foreign exchange headwinds and the discontinuation from some live-streaming services.
On Feb. 4, MTCH reported its Q4 results, and its shares closed down by 7.9% in the following trading session. Its EPS of $0.59 declined 27.2% year over year. The company’s revenue was $860.2 million, surpassing Wall Street forecasts of $856 million. The company expects full-year revenue in the range of $3.4 billion to $3.5 billion.
MTCH’s rival, Meta Platforms, Inc. (META) has taken the lead over the stock, with a 1.9% gain over the past six months and a 17.4% gain over the past 52 weeks.
Wall Street analysts are moderately bullish on MTCH’s prospects. The stock has a consensus “Moderate Buy” rating from the 24 analysts covering it, and the mean price target of $36.32 suggests a potential upside of 15.4% from current price levels.
