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.
More To Explore
Newsletter
Bloom Energy — Our 2026 Top Pick Was the Best Performing Stock in April
April was the best month in six years for the Nasdaq-100. The single best-performing large-cap stock wasn't Nvidia, Microsoft, or Meta. It was Bloom Energy, up roughly 109% in one month. As you'll rec
Inside Nvidia’s $4B Optical Strategy—and Why CPO Changes Everything
Within the AI investment theme, there is nowhere that the supply chain shifts faster than in networking, leading companies to gain content on new platforms or lose incremental share. The reason is str
Is Nvidia Stock a Buy? Why Semiconductor Strength May Signal a Market Top
In this report, we take a deeper look at the technical scenarios, which suggests that Nvidia’s latest high is shaping up to be a potential bull trap. That view is corroborated by the broader semicondu
Nvidia’s $20 Trillion Thesis Is Intact. My 2026 Allocation Isn't
The thesis on Nvidia's hardware moat has played out exceptionally well, but that also highlights one of the biggest risks investors face, which is becoming emotionally attached to a winning stock. Whi
Bitcoin 2026 Price Prediction: Why the Dollar, Global Liquidity and Volume Signal More Downside Ahead
In our last Bitcoin analysis, "Bitcoin After the Cycle Peak: What Comes Next and How We're Positioning", we argued that Bitcoin was closer to a cycle low than most believed, even if one final drop rem
2026 Stock Market Outlook: Cycle Convergence & What's Next
In our last broad market update, the S&P 500 was trading near 6,850, grinding through its fifth consecutive month of going nowhere. I drew a clear line in the sand at the 6,780 level. This was where t
Arm Stock Could Win as Agentic AI Shifts the Bottleneck to CPUs
Arm unveiled an AGI CPU to address one of AI’s biggest bottlenecks, which is orchestration. During the chatbot craze of 2023-2025, GPUs did most of the heavy lifting while CPUs had become an afterthou
Nvidia Stock Prediction: The Path to a $20 Trillion Market Cap is Strengthening
The $20 trillion market cap will not come from GPU unit growth alone, though unit growth remains very important. Rather, the value proposition will increasingly focus on economic output. This marks a
Nvidia Stock to See New Growth Catalyst; 35X Faster AI with Groq 3 LPX
At GTC this week, Jensen Huang stated the revenue opportunity for Nvidia’s artificial intelligence chips may reach at least $1 trillion through 2027, up from a previous target of $500 billion. While t
Palantir Stock is Out of Favor, but is the Growth Engine Still Intact?
Palantir stock sold off 38% from November to February and is down about 10% year-to-date. Even so, it has held up better than many software peers given the software sector has taken it on the chin lat
