Bumble Inc. (BMBL): A Bull Case Theory

We came across a bullish thesis on Bumble Inc. (BMBL) on @catapultcap on X (Twitter). In this article, we will summarize the bulls’ thesis on BMBL. Bumble Inc. (BMBL)’s share was trading at $5.72 as of 23^rd May. BMBL’s trailing and forward P/E were 18.79 and 9.64 respectively according to Yahoo Finance.

Online dating is currently experiencing a correction, with total monthly active users (MAUs) across major apps dropping to levels last seen in 2018. Despite losing the initial hype and novelty that followed Tinder’s launch, and growing awareness of some drawbacks, the fundamental appeal of online dating remains strong. It has become the primary way people meet, surpassing traditional methods such as introductions by friends, meeting at bars, or at work.

This shift is unlikely to reverse, meaning the industry’s MAUs are expected to bottom out and return to growth in the coming years. Within this evolving landscape, more “serious” platforms like Bumble and Hinge are poised to gain market share, while apps perceived as spammy, like Tinder, may lose ground. This expectation is supported by the belief that Bumble trades at an attractive valuation of less than seven times unlevered earnings, making it a compelling investment opportunity amid the sector’s correction.

Previously, we have covered Bumble, Inc. (BMBL) in April 2025, wherein we summarized a bullish thesis by DeepValueInsights on the Value Investing Subreddit Page. DeepValueInsights highlighted that the stock was deeply undervalued, trading at just 5.1x EV/EBITDA and generating a strong 25% free cash flow yield despite recent net losses. The company maintained solid cash reserves and capital discipline through buybacks, and while debt refinancing posed some risks, its strong brand and user base suggested meaningful long-term upside potential. However, the article noted that other AI stocks might offer greater returns in a shorter timeframe. Since our previous coverage, the stock is up 30.59% as of 26^th May.

Bumble Inc. (BMBL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held BMBL at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of BMBL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BMBL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.