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Match Group (MTCH - Free Report) has performed well given the social distancing climate and the havoc that the coronavirus has caused throughout the entire hospitality and travel and leisure space. Despite its recent strength and solid overall outlook, the digital dating conglomerate’s near-term appears tough.
Online Dating Growth
Match was one of the first online dating companies out there. And over the last 20 years or so, the company has expanded its portfolio to include a ton of different offerings that help it attract users across age, gender, and various dating goals. Today, MTCH’s offerings include its namesake, as well as Tinder, OkCupid, Hinge, PlentyOfFish, and more.
In a world where everything is digital and people spend countless hours glued to their smartphones, Match has certainly benefitted from its diverse range of apps and websites. The company is coming off a year that saw its revenue climb by 19% to reach $2.1 billion.
Last quarter, its revenue jumped 18%, for its strongest growth of the year so far, which makes sense as economies around the world returned closer to normal during the third period. On top of that, its average subscribers popped 12% to 10.8 million.
Near-Term Outlook
Despite its overall strength, Match cannot change the fact that a rise in coronavirus cases around the U.S. and much of the world in the fall and winter saw a return of increased restrictions, particularly at restaurants and other places where people might go on dates. The vaccine is currently being rolled out and many areas have started to lift some restrictions again.
However, uncertainty clearly remains as the winter continues. And our current Zacks estimates call for MTCH’s fourth quarter revenue to fall 46%, with the first quarter of 2021 projected to sink 47%.
Bottom Line
Match’s downward earnings revisions activity helps it grab a Zacks Rank #5 (Strong Sell) heading into the release of its fourth quarter FY20 financial results on Tuesday, February 2. MTCH also holds a “D” grade for Value in our Style Score system and its Internet – Commerce space rests in the bottom 15% of our over 250 Zacks industries.
Match shares have slipped roughly 12% since January 13, which means Wall Street might be down on the stock at the moment. That said, the company’s long-term prospects remain strong in our digital world and it could boom again when this is all over. Therefore, interested investors should pay close attention to its upcoming earnings release.
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Image: Bigstock
Bear of the Day: Match Group, Inc. (MTCH)
Match Group (MTCH - Free Report) has performed well given the social distancing climate and the havoc that the coronavirus has caused throughout the entire hospitality and travel and leisure space. Despite its recent strength and solid overall outlook, the digital dating conglomerate’s near-term appears tough.
Online Dating Growth
Match was one of the first online dating companies out there. And over the last 20 years or so, the company has expanded its portfolio to include a ton of different offerings that help it attract users across age, gender, and various dating goals. Today, MTCH’s offerings include its namesake, as well as Tinder, OkCupid, Hinge, PlentyOfFish, and more.
In a world where everything is digital and people spend countless hours glued to their smartphones, Match has certainly benefitted from its diverse range of apps and websites. The company is coming off a year that saw its revenue climb by 19% to reach $2.1 billion.
Last quarter, its revenue jumped 18%, for its strongest growth of the year so far, which makes sense as economies around the world returned closer to normal during the third period. On top of that, its average subscribers popped 12% to 10.8 million.
Near-Term Outlook
Despite its overall strength, Match cannot change the fact that a rise in coronavirus cases around the U.S. and much of the world in the fall and winter saw a return of increased restrictions, particularly at restaurants and other places where people might go on dates. The vaccine is currently being rolled out and many areas have started to lift some restrictions again.
However, uncertainty clearly remains as the winter continues. And our current Zacks estimates call for MTCH’s fourth quarter revenue to fall 46%, with the first quarter of 2021 projected to sink 47%.
Bottom Line
Match’s downward earnings revisions activity helps it grab a Zacks Rank #5 (Strong Sell) heading into the release of its fourth quarter FY20 financial results on Tuesday, February 2. MTCH also holds a “D” grade for Value in our Style Score system and its Internet – Commerce space rests in the bottom 15% of our over 250 Zacks industries.
Match shares have slipped roughly 12% since January 13, which means Wall Street might be down on the stock at the moment. That said, the company’s long-term prospects remain strong in our digital world and it could boom again when this is all over. Therefore, interested investors should pay close attention to its upcoming earnings release.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
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