JPMorgan Downgrades Rating on Bumble (BMBL) Amid Revenue Pressure

On June 3, JPMorgan downgraded its rating on Bumble Inc. (NASDAQ:BMBL) from Neutral to Underweight, maintaining its price target of $5.

JPM Analyst, Cory Carpenter, noted that while the company’s shares surged over 50% since its restructuring fiasco, the surge was likely driven by cost cuts rather than sustainable long-term growth. The analyst believes the online dating category is a challenge, particularly with current trends, citing Bumble’s primary rival, Tinder’s declining revenue.

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Carpenter is pessimistic about BMBL and expects FY2025 revenue to decline 12% year-over-year, despite growing margins in Q1 FY2025. The analyst also sees a 9% downturn in EBITDA and expects net additions to the Bumble app to fall by 250,000. While the analyst acknowledges Bumble’s low valuation, he defies any expected growth until 2027.

Bumble Inc. (NASDAQ:BMBL) is an online dating and networking application first launched in 2014. The app is available in 190 countries and houses millions of members.

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