The biggest dating stocks have plunged in the past few years as consumers remained adamant about paying. Match Group and Bumble stocks have imploded, shedding billions of dollars in value. Grindr stock, however, has continued to fire on all cylinders and is hovering at its highest level since November 2022.
Grindr has beaten Match and Bumble
Mainstream dating companies like Bumble and Match Group have been under pressure in the past few years. Bumble stock plunged to a record low of $5, bringing its market cap from over $14 billion in 2021 to $516 million.
Match Group, the biggest name in the industry, has also plunged, bringing its market cap from over $51 billion to $7.5 billion. Grindr, on the other hand, has become a $3.28 billion company, up from $700 million in 2023.
This divergence happened because Grindr is a niche company that is still seeing growth around the world. Match Group and Bumble, on the other hand, are struggling as many consumers remain adamant about pricing. While many users are signing up to online dating, many are not comfortable to pay.
Grindr’s business has also been growing at a faster pace than Match Group and Bumble. Its financial results shows that the annual revenue has grown from $108 million in 2019 to over 259 million in 2023 and $319 million in the trailing twelve months.
Read more: Match Group, Grindr, Bumble: are these dating apps stocks good buys?
GRND earnings ahead
The next important catalyst for the Grindr stock price is its upcoming earnings, which will provide more color about its business in the fourth quarter.
The most recent results showed that Grindr’s revenue grew by 27% in the third quarter to $89 million. Its net income jumped to $25 million, while the net income margin was 28%.
In contrast, Match Group’s business is decelerating, with its Q4 revenue falling to $860 million from $866.2 million. Similarly, Bumble’s revenue dropped from $273.6 million to $261 million.
Analysts expect Wednesday’s results to show that the company’s revenues rose to $97.1 million in Q4, bringing the annual figure to $344 million, a 32% increase from a year earlier. Grindr’s revenue will then jump to $425 million this year. Grindr’s guidance was for its revenue to grow by 29% in Q4 and its EBITDA margin to be 42%.
This growth is mostly because many people in the LGBTQ community are willing to pay for the services. Indeed, the number of paying members rose by 15% in Q3 to 1.11 million, a figure that is growing faster than the monthly active users.
Grindr stock price forecast
Grindr stock chart by TradingView
The daily chart shows that the Grindr share price has been in a steady uptrend in the past few years. It has formed an ascending channel shown in blue and remained above the 50-day moving average.
The Percentage Price Oscillator has formed a bearish divergence pattern. Also, the Relative Strength Index (RSI) has formed a symmetrical triangle pattern.
Therefore, the Grindr stock price may keep rising in the coming days, especially if it releases strong financial results. Such a move will see it retest the resistance point at $20. On the flip side, a drop below the key support at $17.50 will invalidate the bullish view.
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