Buy Match Group as a Value Play in the Dating Market

about 2 months ago

Whitney Tilson

"Sure. Um last year uh I recommended Match Group which uh has the dating site Match u but also owns Hinge and Tinder. And um the these are good businesses. There's no capex. They just operate a website and you know people can meet each other. And the stock's uh much more beaten down, but it produces a ton of free cash flow. Um, and it trades at 8 and a half times next year's earnings. They produced in the last 12 months a little over 900 million of free cash flow and they spent 876 million buying back their beaten down stock, reducing their share count by 9% in the last year. It's a classic value stock situation that I like."

Recommends buying Match Group as a value play thanks to its strong free cash flow generation, significant share buyback activity, and attractive earnings multiples amid a beaten down stock price.

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