5 Cheap Social Media Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 54

P/E Ratio as of April 4: 28.81

Match Group, Inc. (NASDAQ:MTCH) offers dating services globally through a range of apps and websites. The company owns and manages a collection of brands such as Tinder, Match, The League, Azar, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, and Hakuna, among others. Match Group, Inc. (NASDAQ:MTCH) was established in 1986 and is headquartered in Dallas, Texas. 

The company expects to achieve a year-over-year growth of 5% to 10% in overall revenue and Tinder’s direct revenue for the entire year 2023. Match Group, Inc. (NASDAQ:MTCH) anticipates that its revenue growth will gradually increase from the levels of the fourth quarter of 2022 and will reach double digits by the fourth quarter of 2023. Projections indicate that Hinge will generate approximately $400 million in direct revenue during 2023. It is one of the best cheap social media stocks to invest in. 

On March 30, Citi maintained a Neutral rating on Match Group, Inc. (NASDAQ:MTCH) and lowered the firm’s price target on the shares to $40 from $54. Citi’s first monthly online dating data tracker revealed that Bumble and Hinge are experiencing significant growth while Tinder is facing more challenges. The company’s target was trimmed due to the continued decline in Tinder’s data, as reported by SensorTower. Citi’s note added that Tinder witnessed a decline in active users, time spent, and downloads during Q1.

According to Insider Monkey’s fourth quarter database, 54 hedge funds held stakes worth $730.3 million in Match Group, Inc. (NASDAQ:MTCH), compared to 54 funds in the prior quarter worth $621 million. 

RGA Investment Advisors made the following comment about Match Group, Inc. (NASDAQ:MTCH) in its Q4 2022 investor letter:

“Match Group, Inc. (NASDAQ:MTCH), a long-term holding of ours offers an important illustrative example of these effects. Tinder grew reported revenues 6% year-over-year, accelerating a debate about whether this particular asset has reached a plateau in its growth curve; however, revenues grew 16% on an FX neutral basis. Has this asset stalled or is it a mid-teens grower? Other factors will determine the one true answer to this question, though FX and the stated headline make the answer seem obvious when it is not. When foreign exchange movements are modest, people tend to focus more on FX neutral assuming those changes will normalize over time, yet when movements are extreme the headline takes prominence.”