In this article, we discuss the 5 best dating stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Dating Stocks to Buy Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s now take a look at the 5 best dating stocks to buy now:
5. 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS)
Number of Hedge Fund Holders: 22
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) is a New York-based company that sells floral and food-related retail items. It was founded in 1982 and is ranked fifth on our list of 10 best dating stocks to buy now. The stock has returned more than 64% to investors over the course of the past twelve months. Flowers are perhaps the most popular and most common gift that many Americans associate with dating. Some of the items that the firm retails include flowers, fruit arrangements, plants, gift baskets, jewelry, and others. It has a market cap of close to $2.5 billion and posted close to $1.5 billion in revenue last year.
In quarterly earnings results posted on April 29, 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) reported earnings per share of $0.02 for the third fiscal quarter, beating market estimates by $0.11. The revenue over the period was over $474 million, up 70% year-on-year.
On April 30, investment advisory DA Davidson upgraded 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) stock to Buy from Neutral with a price target of $57 on the back of strong quarterly results posted by the firm a day earlier.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm GAMCO Investors is a leading shareholder in 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) with 581,900 shares worth more than $16 million.
4. Spark Networks SE (NYSE: LOV)
Number of Hedge Fund Holders: 6
Spark Networks SE (NYSE: LOV) is a Germany-based dating company founded in 1997. It is placed fourth on our list of 10 best dating stocks to buy now. The company’s shares have returned more than 45% to investors in the past year. Some of the online dating brands that the company owns include Zoosk, SilverSingles, EliteSingles, Jdate, Christian Mingle, eDarling, JSwipe, and AdventistSingles, among others. The company caters to the 40+ age group and conservative individuals for dating services.
In quarterly earnings results posted on May 17, Spark Networks SE (NYSE: LOV) reported a revenue of over $56 million for the first three months of 2021, down more than 2% year-on-year and beating market predictions by $0.14 million.
At the end of the first quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $44 million in Spark Networks SE (NYSE: LOV), down from 9 in the preceding quarter worth $38 million.
3. Netflix, Inc. (NASDAQ: NFLX)
Number of Hedge Fund Holders: 110
Netflix, Inc. (NASDAQ: NFLX) is a California-based production company that operates a popular video streaming service. It was founded in 1997 and is ranked third on our list of 10 best dating stocks to buy now. The company’s shares have offered investors returns exceeding 12% over the course of the past twelve months. The company is the largest online streaming service in the world with over 200 million subscribers scattered around more than 180 countries around the world. Recently, the phrase ‘Netflix and chill’ has become synonymous with dating as young Americans prefer to stay in and stream a Netflix show instead of going out on a date.
On April 20, Netflix, Inc. (NASDAQ: NFLX) posted earnings results for the first three months of 2021, reporting earnings per share of $3.75, beating market estimates by $0.78. The revenue over the period was more than $7 billion, up 24% year-on-year.
On April 21, news reports suggested that Netflix, Inc. (NASDAQ: NFLX) was planning an expansion into the video game industry and was looking to hire an executive in this regard. The shares of the firm jumped 1% after the report was published.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ: NFLX) with 4.1 million shares worth more than $2.1 billion.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ: NFLX) was one of them. Here is what the fund said:
“We purchased Netflix in March, initiating a 3% position in the Portfolio. We believe Netflix is a highly competitively advantaged company. It has recently met all our investment guardrails, and we anticipate it will remain sustainably above our guardrails over the next five years and beyond. We know Netflix for its ubiquitous streaming service and deep library of owned content. The company has made investments in this content (currently running at nearly $20 billion/year), generally keeping subscribers highly engaged and loyal to their service. The company has number one market share in 99% of markets globally, but it is our view that video streaming on-demand is still an underpenetrated space with many years of attractive growth likely ahead. The service is also relatively affordable at roughly $11/month on average globally.
We believe Netflix’s growth in content spend is beginning to moderate, which could allow margin expansion to continue for many years when paired with ongoing subscriber growth and price increases. While there is competition from the likes of Apple (Apple TV+), Amazon (Prime Video), Disney (Disney+ and Hulu), and others, we believe there can be a handful of winners in this industry. Already, we see many people subscribe to multiple streaming video services, with Netflix being their “anchor” service. That said, the barriers to entry are high, and we believe they are getting higher given the substantial amount of capital and size of the subscriber base required to maintain a competitive service for both viewers and content producers. Over the next five years, we expect Netflix’s earnings growth to be approximately 30% annualized and free cash flow to grow at an even higher rate.”
2. Momo Inc. (NASDAQ: MOMO)
Number of Hedge Fund Holders: 25
Momo Inc. (NASDAQ: MOMO) is a Chinese social media company founded in 2011. It is placed second on our list of 10 best dating stocks to buy now. The stock has returned more than 9% to investors year-to-date. In addition to social media services, the firm also owns and runs a dating application for young adults named Tantan. The services offered by the company are primarily mobile-based. It has a market cap of over $3.2 billion and posted more than $2.3 billion in revenue last year.
On May 17, investment advisory Morgan Stanley downgraded Momo Inc. (NASDAQ: MOMO) stock to Underweight from Equal Weight on the back of regulatory concerns and uncertainty regarding the results of certain strategic changes made by the firm.
In quarterly earnings results posted on June 8, Momo Inc. (NASDAQ: MOMO) reported earnings per share of $0.44, beating market estimates by $0.11. The revenue over the period was close to $530 million, missing market predictions by $3 million.
At the end of the first quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $342.4 million in Momo Inc. (NASDAQ: MOMO), up from 24 in the preceding quarter worth $342.2 million.
1. Match Group, Inc. (NASDAQ: MTCH)
Number of Hedge Fund Holders: 68
Match Group, Inc. (NASDAQ: MTCH) is a Texas-based technology company that operates a bunch of online dating services. It was founded in 2009 and is ranked first on our list of 10 best dating stocks to buy now. Some of the dating platforms it operates include Tinder, Match.com, Meetic, OkCupid, Hinge, PlentyOfFish, Ship, and OurTime, among others. Millions of users worldwide use the services offered by the company.
Match Group, Inc. (NASDAQ: MTCH) posted quarterly earnings on May 4, reporting earnings per share of $0.57, beating market estimates by $0.19. The revenue over the period was more than $660 million, up 22% year-on-year.
At the end of the first quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $2.9 billion in Match Group, Inc. (NASDAQ: MTCH), down from 72 in the preceding quarter worth $3.7 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Match Group, Inc. (NASDAQ: MTCH) was one of them. Here is what the fund said:
“In addition to the new issue market, we have been tactically adding growth exposure. Our largest new position was Match Group, the global leader in the online dating space that was spun off by Interactive Corp. in 2020. Singles have put their life plans on hold during the pandemic but continue to want to meet people. Match was negative impacted by COVID, especially in markets like India, but the business is very profitable with high margins and is driving growth through international expansion, increasing users and better monetization and engagement.”
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.
