11 Cheap Penny Stocks to Invest In

2. Bumble Inc. (NASDAQ:BMBL)

Forward P/E Ratio as of December 22: 5.51

Share Price as of December 22: $3.54

Number of Hedge Fund Holders: 34

Bumble Inc. (NASDAQ:BMBL) is one of the cheap penny stocks to invest in. On December 11, Jefferies lowered the firm’s price target on Bumble to $4 from $5 while keeping a Hold rating on the shares. The firm recommended a cautious stock-picking approach for the Internet sector in 2026. Key risks include limited margin growth due to rising investment costs and the possibility that AI agents could bypass traditional platforms, capping the potential for higher stock multiples.

In its Q3 2025 earnings report, Bumble disclosed that its total revenue for the quarter was $246 million, which was a 10% decline year-over-year. The Bumble App accounted for $199 million of this total (down 10%), while Badoo and other revenue fell 11% to $47 million. Despite the top-line contraction, the company achieved a net income of $52 million, which was a recovery from the $849 million net loss in the prior year, which had been driven by ~$900 million in non-cash impairment charges.

The company is currently prioritizing quality over quantity, a shift that has led to a deliberate 16% decline in total paying users to 3.6 million. However, this focus on higher-value members resulted in a 6.9% increase in Average Revenue per Paying User, which rose to $22.64. Management also highlighted the successful relaunch of BFF (formerly Bumble For Friends), noting improved user retention, though the new standalone app had not yet generated significant revenue as of September 30.

Looking ahead, Bumble provided a cautious outlook for Q4, projecting revenue between $216 and $224 million (a 14% to 17% year-over-year decline). Adjusted EBITDA is expected to land between $61 and $65 million with margins of 28% to 29%.

Bumble Inc. (NASDAQ:BMBL) provides online dating and social networking applications in North America, Europe, and internationally. It owns and operates websites and applications that offer subscription and in-app purchases of products.