‘The Next Facebook’: 5 Undvervalued Internet Stocks with Huge Upside

In this article, we discuss the 5 undervalued internet stocks with huge upside. If you want to read our detailed analysis of these stocks, go directly to ‘The Next Facebook’: 10 Undvervalued Internet Stocks with Huge Upside.

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

Number of Hedge Fund Holders: 68    

Match Group, Inc. (NASDAQ: MTCH) is ranked fifth on our list of 10 undervalued internet stocks with huge upside. The company operates from Texas and provides dating products. According to Qingshan Capital Management, the upside potential of the stock is significant and the firm is expected to post sales growth for the next four years. The bullish analysis also highlights how the company is posting growth numbers from every part of the world and the stock looks attractively priced if the interest rates remain low and market volatility does not increase in the short term. 

On August 5, investment advisory Morgan Stanley maintained an Overweight rating on Match Group, Inc. (NASDAQ: MTCH) stock with a price target of $180, identifying a recent pullback in price following soft quarterly results as a buying opportunity. 

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.”