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Bull of the Day: Match Group (MTCH)

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Match Group (MTCH - Free Report) continues to hum along as Millennials and GenZ embrace dating apps. This Zacks Rank #1 (Strong Buy) is expected to post double digit earnings growth this year and next.

Match Group provides dating products in over 40 languages all over the world. Its brands include Tinder, Match, PlentyofFish, Meetic, OkCupid, OurTime, Pairs and Hinge as well as others.

As of Mar 31, 2019, it had average subscribers of 8.6 million.

Match Beat Again in the First Quarter

On May 7, Match Group reported its first quarter results and blew by the Zacks Consensus Estimate by 48%. It reported earnings of $0.48 well above the Zacks Consensus of $0.33.

It was the fifth earnings beat in a row.



Revenue jumped 14% to $465 million from $407 million in the year ago quarter.

Average subscribers, a key metric for digital companies, rose 16% to 8.6 million, up from 7.4 million in the first quarter of 2018.

Of that number, Tinder average subscribers were 4.7 million, up 1.3 million year-over-year.

The company is looking for market opportunities, especially in Asia.

Match was spun off from IAC (IAC - Free Report) in 2015. IAC still owns a large interest in Match.

As of Mar 31, 2019, IAC had an economic ownership interest in Match which was 80.4% and a voting interest of 97.5%.

Analysts Bullish on 2019 and 2020

Given the big beat and stellar subscriber growth, the analysts have been bullish with their estimates.

7 estimates were revised higher, but one was lowered, in the last 30 days for 2019. That pushed the Zacks Consensus Estimate up to $1.91 from $1.62.

That's earnings growth of 25.7% compared to 2018 when the company made just $1.52.

They are bullish on 2020 as well.

5 estimates were revised higher, but 2 lower, over the last month for 2020. That pushed the Zacks Consensus Estimate up to $2.23 from $2.09, which is another 17.2% earnings growth.

One of the Hottest Stocks of the Year

Match Group shares have soared. Year-to-date they're up 61.4%.



Since the 2015 IPO, they have jumped 354% compared to just 47.8% for the NASDAQ.

You're not going to get the shares cheap, that's for sure. This is a growth stock all the way.

Match trades with a forward P/E of 36.4.

But for investors looking to invest in the world of dating apps, it's one to keep on your short list.

The Hottest Tech Mega-Trend of All                 

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

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Match Group Inc. (MTCH) - free report >>

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