Back to top

Image: Bigstock

Facebook (FB) Dating's European Expansion to Stir Up Competition

Read MoreHide Full Article

Facebook (FB - Free Report) recently announced the launch of its dating service in 32 European countries. Facebook Dating, a feature available within the Facebook app, was launched in the United States in September last year. It is currently available in 20 other countries.

The company had to delay the rollout of Facebook Dating in Europe in February after concerns were raised by Ireland’s Data Protection Commission (DPC). Per the regulator, Facebook failed to give it enough time and documentation to assess data protection impacts or decision-making processes undertaken by the company.

The dating service, which appears as a tab in the Facebook app, will take the first names and ages of users from their Facebook profiles, which cannot be edited. User’s last names will not be displayed and they will have discretion over sharing their personal information on their profiles.

It also allows the users to share stories from Facebook or Instagram onto their dating profiles and includes the Secret Crush tool, which enables users to select up to nine of their existing friends whom they are interested in to add to their dating network.

Markedly, more than 1.5 billion matches have been created in the 20 countries since the launch of Facebook Dating.

Facebook, Inc. Price, Consensus and EPS Surprise


Facebook Dating Stirs Up Competition

Per a Verified Market Research report, the online dating services market is projected to hit $9.39 billion by 2026, at a CAGR of 4.6%. Surge in internet penetration and the number of singles around the globe has resulted in significant growth in the online dating services market.

Notably, Facebook Dating is expected to pose stiff competition to global dating services like Bumble, Match Group’s (MTCH - Free Report), OKCupid and Tinder.

Facebook’s shares have surged 35.4% in the year-to-date period compared with the Zacks Internet services industry’s growth of 23.1%. The dating service could not only boost the social media giant’s popularity but also improve its penetration among singles.

Facebook continues to have a significant competitive edge due to its scale and diversified product offerings. It wins the game for holding a greater number of monthly active users, 2.7 billion as of second-quarter 2020, while Tinder had 6.2 million average subscribers. 

Facebook Dating doesn’t need any additional downloads, and thus uniquely taps into the company’s existing user base of around 3 billion. Its mode of operation stands out, thanks to its interesting inclusive options.

Zacks Rank & Stocks to Consider

Facebook currently has a Zacks Rank #3 (Hold).

Alphabet (GOOGL - Free Report) and Autohome (ATHM - Free Report) are a couple of better-ranked stocks in the same industry. Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Alphabet and Autohome is pegged at 16.3% and 18%, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Facebook, Inc. (FB) - free report >>

Alphabet Inc. (GOOGL) - free report >>

Autohome Inc. (ATHM) - free report >>

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