2 Best Dating Stocks to Buy

1. Match Group, Inc. (NASDAQ:MTCH)

Number of Hedge Fund Holders: 54

Match Group, Inc. (NASDAQ:MTCH) is a communication services company based in Dallas, Texas. Its brands include dating apps such as Tinder, Match, Meetic, OkCupid, and Hinge.

On November 3, John Blackledge, an analyst at Cowen, reiterated an Outperform rating on Match Group, Inc. (NASDAQ:MTCH), while placing an $80 price target on the stock.

Currently, Match Group, Inc. (NASDAQ:MTCH) has the largest portfolio of dating apps, and it held over 60% of the North American online dating market as of this October. About 28% of the company’s revenues are generated as free cash flow. Consensus estimates called for 22% earnings growth from the company, and 13% revenue growth over the next three years. These figures are much higher than the average in the industry.

In the third quarter, 54 hedge funds were long Match Group, Inc. (NASDAQ:MTCH), with a total stake value of $621 million.

Artisan Partners, an investment management company, mentioned Match Group, Inc. (NASDAQ:MTCH) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Match Group, Inc. (NASDAQ:MTCH) is the global leader in online dating services across a portfolio of 45 brands including Tinder, Match.com, OkCupid and Hinge. Despite excellent growth momentum at Hinge, the company overall has experienced macro headwinds (inflation impacting lowend consumers, foreign exchange pressures) and product execution issues at Tinder (>50% of revenue). Tinder’s product innovation roadmap has not delivered as expected in 2022, falling short on efforts to drive higher user adoption of premium features. Fortunately, a new CEO took over in May, and his focus is on turning around Tinder by upgrading leadership and strengthening product development efforts. While we are disappointed in the loss of profit cycle momentum, Match remains the leading franchise in online dating and generates significant cash flow. Given its depressed valuation, we are taking time with this mid-sized position to evaluate the turnaround plan at Tinder.”

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