Is Bumble Stock a Better Buy Than Tinder?
October 13, 2021
I/O Fund
Team
In the video discussion below, I check in on Bumble following the company’s IPO earlier in the year. Bumble’s stock is down 30% since its IPO, as total growth at the company has somewhat stagnated. However, Bumble users are split 50/50 between Bumble and a Russian dating app called Badoo. Badoo isn’t growing, but Bumble is. In fact, Bumble sales grew strongly in the latest quarter.
I suspect that the Street may be overlooking Bumble because of the underwhelming results of the consolidated company. However, by stripping out Badoo from the company, Bumble results appear much stronger. Bumble App sales grew 55% YoY, which was much faster than Tinder’s 26% YoY growth rate in the latest quarter. Yet, despite its stronger growth rate, Bumble trades at half the valuation of Tinder (MTCH).
Sign up for I/O Fund's free newsletter with gains of up to 1100% - Click here
Looking forward, I believe that as Bumble App users continue to grow strongly, user mix will favor Bumble over Badoo. This trend will force the Street to take an interest in the fast-growing company. As a result, the large valuation delta between BMBL and MTCH (Tinder) will likely close as Bumble’s growth is better appreciated by the market. If we value BMBL based purely on Bumble App sales (excluding Badoo) but use Tinder’s multiple, there is plenty of upside in Bumble’s share price.
Disclaimer: This is not financial advice. Please consult with your financial advisor in regards to any stocks you buy.
Get a bonus for subscription!
Subscribe to our free weekly stock
analysis and receive the "AI Stock: 5
Things Nobody is Telling you" brochure
for free.
More To Explore
Newsletter
Tesla Stock Faces Recalibration of Growth Expectations
Tesla’s stock is now facing a recalibration of expectations after Q1’s delivery report missed by a wide margin. Q1’s analyst consensus has gone from $25.98B at the start of the year to $23.97B in earl
The Fed Can’t Save This One: Why Bonds May Break the Stock Market in 2025
In early 2025, as markets rallied to new highs, we warned that divergence across key sectors signaled a looming correction. Now, with all major indexes in a technical bear market and bond market dysfu
Oracle Stock Outlook: Revenue Could Double by FY2029, yet Targets Seem Lofty
Late in 2024, Oracle outlined an ambitious plan to nearly double its revenue by fiscal 2029, hinging on long-term growth in enterprise AI and cloud spending. Oracle sets itself apart from its hypersca
I/O Fund Reports 210% Cumulative Return -- Ranking Above Wall Street's Best
In 2024, I/O Fund posted a 35% return, significantly outperforming popular tech ETFs, which recorded an 8% return over the same period. On a cumulative basis, the results translate to a remarkable 219
The Harsh Truth: Retail Investors Take the Brunt of Market Losses
Retail investors face significant disadvantages in the stock market, often underperforming institutional investors by a wide margin. Studies show that high-frequency trading firms dominate market acti
NVIDIA’s GB200s for up to 27 Trillion Parameter Models: Scaling Next-Gen AI Superclusters
Supercomputers and advanced AI data centers are driving the AI revolution, enabling breakthroughs in deep learning and large-scale model training. As AI workloads become increasingly complex, next-gen
NVIDIA Blackwell Ultra Fuels AI & HPC Innovation, Efficiency and Capability
NVIDIA’s latest Blackwell Ultra GPU, unveiled at NVIDIA GTC 2025, is transforming AI acceleration and high-performance computing (HPC). Designed for the “Age of Reasoning,” these cutting-edge GPUs del
Nvidia CEO Predicts AI Spending Will Increase 300%+ in 3 Years
Nvidia has traversed choppy waters so far in 2025 as concerns have mounted about how the company plans to sustain its historic levels of demand. At GTC, Huang threw cold water on many of the Street’s
Why Gas Pipelines Are the Unsung Heroes of AI Data Center Expansion
Natural gas is emerging as the backbone of AI data center expansion, with demand expected to reach up to 6 billion cubic feet per day by 2030. As AI-driven infrastructure surges, data centers are turn
AI Data Center Power Wars: Brown vs. Clean vs. Renewable Energy Sources
AI data centers are at the heart of the AI revolution, but their massive energy demands raise critical questions. With power consumption expected to grow 160% by 2030, data centers are turning to a mi