Avoid Early Investment in MTCH Until Tinder Stabilizes

about 1 month ago

Daniel Mahncke

"I have very little confidence in their game plan going forward and I don't think it's appropriate to recommend the company at the moment. Maybe by next year, if we see signs of Tinder stabilizing, the stock will definitely jump."

The analysts highlight that despite Match Group (MTCH) trading at attractive valuation multiples (with a current forward free cash flow yield of around 10% and low multiples relative to historical highs), significant risks persist due to the ongoing decline in Tinder's paid user base. They caution investors to avoid buying MTCH at current levels and instead wait for clear signs of a turnaround in Tinder's performance before considering an investment. This caution is reinforced by the potential for a 15% annual return if a turnaround materializes, suggesting that premature entry could expose investors to unnecessary risk.

Related Stocks